BUSINESS REGULATORY FRAMEWORK

CHAPTER 2 : Partnership Act

Correct
Sr. No Multiple Choice Questions A B C D
Answer
formulation and formulation and
 formulation and regulation formation and regulation of
regulation of Joint regulation of Chit Funds
of General Partnership Firms Limited Liability Partnership
Ventures with Organisations with D
The Limited Liability Partnership Act, 2008 and Limited Liability formed with limited liability formed
unlimited liability unlimited liability formed
(6 of 2009) is an Act to make provisions for under Indian Partnership Act, under the Limited Liability
formed under Indian under the Chit Funds Act,
1 the 1932 Partnership Act, 2008.
Contract Act, 1872 1982
An ordinary partnership business can have: Not more than 20 Any number than 2
B
2 Not more than 50 partners. partners.  (T) Any number of partners. partners.
 Every partner is ……….. of the other
A
3 partners. an agent servant owner principa
Which of the following is not an essential
requisite for creating a partnership as per an agreement to carry on a business to be carried by all D
4 section 4 business sharing of profits sharing of losses or any of them acting for all.
Which of the following is an exception to where there is a provision for where there is a
the partnership at will, as provided under the duration of the provision for A
5 section 7 of the Indian Partnership Act, partnership determination of the both (a) and (b) only (a) and not (b).
1932 partnership
to file a suit for the to file a suit against a
The non - registration of firm does not to file a suit for the recovery recovery of less than partner for recovery of to claim a set off not B
6 affect the right of the firm of more than 100 Rs. 100 money due by him exceeding Rs 100
Registration of a firm under the Indian
compulsory not optional not necessary inevitable C
7 Parnership Act, 1932
not liable for the debts liable for the nominal one whose liability is
A nominal partner is liable for the debts of the firm A
8 of the firm sum primary
Public notice is not given on the death of a
The estate of the
partner but the firm continues the The estate of the deceased his legal representatives
deceased partner is not None of these B
business. For the act of the firm done after partner is liable are personally liable.
liable
9 his death
The Change in the nature of the business of the majority of the partners the seniot partners the financing partners
D
10 a firm can be made if agree agree agree all the partners agree
If the assests of the firm are insufficient to
discharge the debts and liabilities of the in the profit sharing ratio in the capital ratio equally as determined by the court. A
11 firm the partners shall bear the deficiency
complete breakdown of the
Dissolution of the partners means relation of partnership only a change in the stopping the business of stopping the business B
12 between all the partners relation of the partners the firm for some time permanetly.
Which one of the following statements An LLP has a legal personality The liability of each
Members of an LLP are  A limited company can convert to
about limited liability partnerships (LLPs) separate from that of its partner in an LLP is D
taxed as partners an LLP.
13 is incorrect? members. limited
The right to be indemnified
The Partnership Act 1890 section 24 sets
The right to share equally by the firm for any liabilities
out rights of partners (in default of their Right to take part in the
The right to a salary. in the capital and profits incurred or payments made B
own agreement). Which one of the management of the business
of the business in the course of the firm's
following is not included in section 24?
14 business.
Sparkle Ltd is a private limited company
limited by shares. It has one director. How one provided it is a different One which can be the same
Five Two D
many shareholders does the law require it person than director person as the director
15 to maintain?
An organisation running a business has the
following attributes: the assets belong to
the organisation, it can create a floating
charge over its assets, change in A limited liability
A private limited company a general partners A public limited company B
membership does not alter its existence, partnership
and members cannot transfer their
interests to others. What type of
16 organisation is it?
Every Limited Liability Partnership as per
both of them shall  both of them should be both of them should belong
the Limited Liability Partnership Act, 2008 at least one among them
belong to one family non-resident Indians to a single country outside A
shall have at least two Designated Partners shall be resident in India
residing in India (NRIs) India.
17 (DPs) who are individuals and
Where a partner is authorised to recover
dues of the partnership & spend the same
guilty of criminal breach of accountable civilly to
for the business of the partnership and if both (a) and (b) either (a) or (b). C
trust the other
he does not deposit the money so collected
18 in the bank the partner is
is a question of fact to be
When the property is purchased out of the becomes an estate of the determined with is a question of law to be
becomes a joint estate A
partnership funds but in the name of an partner reference to the intention decided on legal principles.
19 individual partner, it of the partners
belong to the belong to the partnership
belong to the partnership if
All the benefits and liabilities arising out of partnership if the if the contract has been
the contract has been
a contract made on behalf of a partnership contract has been performed after the none of the above. A
performed before the
do not performed before the dissolution of the firm or
dissolution of the firm
20 retirement of the firm retirement of a partner
 BUSINESS REGULATORY FRAMEWORK
CHAPTER 1 : Law of Contract Act
Correct
Sr. No Multiple Choice Questions A B C D
Answer
Acceptance of proposal should be
1 Complete Legal Illegal Uncompleted A
unconditional and ____ 
Contract without consideration is_____
2 Void able Illegal Legal Improper C
and void
3 Each ___ is not contract Agreement Acceptance Insurance Promise A
The contract is that where implementation
4 Law Parties Proposal Advocates A
of agreement can be done by ____
Minor cannot be done as promissory but he Implement or of
5 Promises Adult Acceptance D
can be done as ……….. promise
All damages which he may
All sums which he
be compelled to pay in any
All costs which he may have paid under
suit in respect to any
6 may be compelled to the terms any All of the above D
The promisee in a contract of indemnity, matter to which he
pay in any such suit compromise of any
acting within the scope of his authority, is promise  to indemnity
such suit
entitled to recover from the promiso :  applies
Which one of the following is correct Acceptance, no
Contract, breach, Offer, no acceptance, Contract, offer,
7 sequence in the claim for damage for consideration, A
damages damages damages
breach of contract ? damages
Damages awarded with a view to punish
8 the party who commits the breach of Liquidated damages Punitive damages Special damages General damages B
contract are known as :
Every promise and every set of promises,
9 forming the consideration for each other, agreement contract offer Acceptance B
is an
cannot be enforceable by is invalid for want of has no consensus
10 is valid in law. A
Agreement to murder a person law. consideration. ad idem.
A promise to give 5000 per month pocket B has to give
B has no remedy B can accept a lower
11 money to his son B. If A does not give the B can sue his father. 5000 to his B
against A. pocket money also.
pocket money father.
mutual mutual lawful
rights and obligations of obligations of the understanding rights and
12 D
the parties to it. parties to it. between the parties to obligations of the
A contract creates it. parties to it.
In agreements of a purely domestic nature,
to be proved to the required to the extent not relevant at
13 the intention of the parties to create legal presumed to exist. A
satisfaction of the court. of consideration. all.
relationship is
A and B enter into a contract to marry each
other. Before the time fixed for the
14 void. illegal. valid. voidable. A
marriage, A goes mad. The contract
becomes
A makes a contract with B to beat his unenforceable
15 valid contract. illegal agreement. voidable contract. B
business competitor. This is an example of contract.
16 ……………… is made by words written. Express contract implied contract Tacit contract Unlawful contract A
Where a contract has to be inferred from unlawful
17 express contract. implied contract. tacit contract. B
the conduct of parties, it is called contract
Drawing cash from ATM, sale by fall of
18 hammer at an auction sale, etc., are express contract. implied contract. tacit contract. unlawful contract B
example of
. …………….. is a one-sided contract in which
19 only one party has to perform his promise Void contract Illegal agreement Unilateral contract Bilateral contract C
or obligation.
Where the obligation in a contract is
20 outstanding on the part of both parties, it void contract. illegal agreement. . unilateral contract. bilateral contract D
is called
Where a particular type of contract is
required by law to be in writing and
registered, it must comply with the unenforceable
21 void contract. illegal agreement. valid contract. D
necessary formalities as to writing, contract.
registration and attestation. Otherwise,
such a contract is
All illegal agreements are void; but all void
22 True Partly true False None of the above A
agreements are not illegal.
should be made to the should be made to
An offer and its acceptance is the basic other who is related to may also be made to another who may or should be made
23 C
requirement of an agreement and as per him.another before the himself. may not be related to to
this requirement an offer by one party Registrar him.
According to enforceability, the contracts
24 valid contracts. void contracts. voidable contracts. all of the above D
may be classified as
that the parties
that parties do not do not intend to
that parties do not intend that parties intend to
25 intend to make legal create legal D
to create social relations. perform them.
and social relations. relations between
In social agreements usual presumption is them.
A promised to marry B. Later on B died. is void from very
26 becomes void. is valid. is illegal now. A
This contract of marriage beginning.
An implied contract is one which comes non-availability of a inability of the parties directions given
27 conduct of the parties. A
into existence on account of paper for writing. to write or speak. by a court
 A contract in which, under the terms of a
none of the
28 contract, nothing remains to be done by executed contract. executory contract. unilateral contract. A
above.
either party is known as
A contract in which, under the terms of a
contract, one or both the parties have still
29 executed contract. . executory contract. unilateral contract. none of the above B
to perform their obligations in future is
known as
partly executed or
30 Contracts classified on the basis of executed contracts. executory contracts. partly executory all of the above. D
performance are contracts.
words either spoken or both words and
31 documents. all of the above. D
Express contract means a contract made by written. documents.
A minor by representing his age borrows He cannot be sued for He is liable to return
32 He can be sued for fraud None of the above B
some money fraud the money
uncertainity of
33 want of consideration unsoundness of mind illegality of object B
Flaw in capacity to contract may arise from object
When a person positively asserts that a fact
is true when his information does not
34 misrepresentation fraud undue influence Coercion A
warrant it to be so, through he believes it to
be true, there is
It there is fradulent misrepresentation as
35 to the character of a document the contract Void voidable valid contract. illegal B
is
An unlawful detention of any property to
36 misrepresentation fraud undue influence Coercion D
obtain his consent to a contrat amounts to
A supplies the wife and children of B, a A is entitled to be A is not entitled to be
37 lunatic with necessaries suitable to their reimbursed from B's reimbursed from B's Both A and B None of these A
condition in life : property property
A, a tradesman, leaves goods at B's house
Not Bound to pay for
38 by mistake. B treats the goods at his own. B  Bound to pay A for them Both A and B None of these A
them
is
A sell and delivers goods to B. A afterwards,
The contract is The agreement if
39 without consideration agrees to pay for The agreement is Void The contract is Void A
Voidable valid
them in default of B
A enters into a Contract with B to sell him
100 bales of cotton and afterwards C for the piece of Either B or C, or both
40 B for the piece of cotton None of these A
discovers that B was acting as agent for C. cotton for the piece of cotton
A may sue :
A supplies the wife and children of B, a A is entitled to be A is not entitled to be
41 lunatic with necessaries suitable to their reimbursed from B's reimbursed from B's Both A and B None of these A
condition in life : property property
A agrees to buy from a certain horse. It
turns out that the horse was dead at the
42  Void Voidable Valid None of these A
time of bargain. Though neither party way
aware of the fact. The agreement is
A, by Misrepresentation, leads B
erroneously to believe that five hundred
mauds of indigo are made annually at A's
Not Voidable on
factory. B examines the accounts of the Voidable on account of A's
43 account of A's Valid Void B
factory. Which show that only four misrepresentation
misrepresentation
hundred mauds of indigo have been made.
After this B buys the factory, the contract
is.
A is entitled to succeed to an estate at the
death of B. B dies C having received
intelligence of B's death, prevents the Voidable at the option
44 Voidable at the option of A Not Voidable None of the above A
intelligence reaching A and thus induces A of B
to sell him his interest in the estate, the
sale is.
A and B being traders, enter upon a
contract. A has private information of a
Not Bound to inform
45 change in prices which would affect B's Bound to inform B Both A and B None of the above B
B
willingness to proceed with the contract. A
is .
A intending to deceive B, falsely represents
that five hundred mauds of indigo are
Voidable at option of Voidable at option
46 made annual at A's factory and thereby Legal Void B
B of A
inducess B to buy the factory. The contract
is.
A agrees to sell a specific cargo of goods
supposed to be on its way from England to
Bombay it turns out that before the day of
 None of the
47 the bargain the ship conveying the cargo Void Voidable  Legal A
above
had been cast away and the goods lost
neither party has aware of these facts, the
agreement is.
Cannot be enforced by
Cannot be enforced either Cannot be enforced by
A promises to paint a picture for B by a A's
48 by A's representatives or B but can be by A's None of these D
certain day at a certain price. A dies before representatives  but
by B representatives
the day. The contract : can be by B
 A, B and C jointly promise to pay D the sum
of Rs. 3,000. C is compelled to pay the To receive Rs. 500 from To receive Rs. 500
To receive Rs. 1,500 To receive Rs.
49 whole. A is insolvent but his assets are A's estate and Rs. 1,250 from A's estate and A
from B 1,000 from B
sufficient to pay one half of his debts. C is from B Rs. 1,000 from B
entitled
A promise to deliver goods at B's
warehouse on first January, on that day A
A has not preformed his A has performed his
50 brings the goods to B's warehouse, but Both A and B  None of these A
promise promise
after the hour closing it, and they are not
received
Advertisement of an auction is not ………..
51 Acceptance Consideration Proposal Agreement C
but it only invitation for the proposal
such agreement is like specific incident
occurred in specific manner at that time
one party give a promise has to pays some
amount or a special object that he and such  agreement which is agreement in
52 wagering agreement legal agreement B
incident occurs in opposite manner at that un certain restraint of trade
time opposite party has to promise to pay
some amount or any object to the first
party such agreement is called ………..
lt is not a consideration which is not
53 Promise Third person Major Promisor D
happened with the wishes of ………..
If all ……….. are made with the consent of
54 Matters Definitions Consideration Gifts C
the parties than it becomes a contract
When the contract possess two part one
legal and second illegal, and it is possible
55 Quasi Legally Illegal contract Ambiguous B
to separate legal parts at that time the
court can implement the part of
A breach of contract can be of
56 B
_____________ breach Actual Anticipatory Both A and B None of the above
57 A minor can be an Agent partner Surety None of the above A
58 A Consideration can simply be explained as Profit Benefit Income Acceptance B
The legal relationship between the
59 middleman and the business person is C
governed by law of business law of surety law of agency None of the above
The person who is represented by agent is
60 A
called the Principal principle Middle man None of the above
The ____ does not usually get any rights
61 B
or responsibilities under the contract Principal Agent Surety None of the above
_____ of the agent is to act on behalf
62 C
ofprincipal is must Consideration Rule Intention None of the above
An agreement between partners imposing
reasonable restriction on a partner for not
63 carrying on any business within a specified A
time or local limits on ceasing to be a
partner is:  (a) Void (b) Valid (c) Illegal (d) None of these
Mr. Aslam applied to a bank for a loan at a
time when there is stringency in the money
64 market, the banker declines to make the (b) Transaction in the B
loan except at an unusually high rate of ordinary course of
interest, this is called:  (a) Undue influence business  (c) Free consent (d) None of these
When consent to an agreement is caused by
65 coercion, fraud, or misrepresentation, the C
agreement is:  (a) Valid (b) Void (c) Voidable (d) None of these
An agreement in restraint of the marriage (d) None of these
66 D
of any person other than a minor is called :  (a) Valid (b) Invalid (c) Illogical (Void)
An agreement entered into before marriage
between a Muslim wife and husband that
67 A
the wife shall be at liberty to live with her Voidable at the option
parents after marriage is: Valid Void of husband (d) None of these
A promises to obtain for B an employment
68 in the Public Service and promises to pay Voidable at the option B
rupees 1000 to A. The agreement is:  Valid Void of husband (d) None of these
Partly valid Ceased to be a valid
69 D
A void contract is: An illegal agreement agreement agreement  None of these
An agreement to pay one hundred rupees
70 to a holy man for prayers for the success of A
a suit in a court is:  (a) Valid (b) Void (c) Voidable (d) None of these
A, for natural love and affection, promises
to give his son B, Rs.100,000, and puts his
71 A
promise to B into writing and registers it.
Will the contract be: (a) Valid (b) Void (c) Voidable (d) None of these
A contract B to sell his horse for Rs.500 by
72 10th January 2010. The horse so contracted B can sue for A A is liable for B
dies on 8th January 2010. The contract is:  (a) Valid (b) Void compensation damages
When consent to an agreement is caused by Voidable at the option
73 coercion, fraud or misrepresentation, the of a party whose C
agreement is: Valid (b) void consent was so caused Partially void
He cannot have access
to and inspect and
74 A
A minor in a firm enjoys the following He may be admitted to the copy any of the
rights: benefits of partnership  accounts of the firm None of these 
to each according to to each according to none of the
75 A
the phrase “quantum meruit” means:  as much as earned     his need      his condition options is correct 
 BUSINESS REGULATORY FRAMEWORK
CHAPTER 3 : Sale of Good Act
Correct
Sr. No Multiple Choice Questions A B C D
Answer
As per-section 2(1), a person who buys or
1 Buyer Seller Both A and B None of the above A
agrees to buy goods is called
2 The voluntary transfer of possession from one Transfer change of posession
person to another is called dilivery None of the above C
3 As per section 2, sub section 7 every kind of moveable
Goods property other thanBoth
actionable
(a) and (b)
claim and money
Future goods
is called None of above A
Future goods means goods to be
4 manufactured or produced or acquired by After making of Before making of B
the seller In future prescribed time contract contract None of above
Who has ceased to pay his Or can not pay his
As per section 2 sub-section 8, of the Sales
5 debts in the ordinary debts as they become Both (a) and (b) None of above C
of Goods Act, insolvent means a person
course of business due
The agent having in customary course of
business as such agent authority either to
6 sell goods or to consign goods for the Agent Mercantile agent Partner None of above B
purpose of sale or to buy goods or to raise
money on the security of goods is called
The goods identified and agreed upon at
7 the time a contract of sale is made are Ordinary goods Specified goods Scheduled goods None of above B
called
According section 5(2) Subject to provision Partly in writing or
8 of any law for the time being in force a Made in writing By words of month partly in words of All of above ways D
contract of sale may be month
A stipulation in contract of sale with
9 reference to goods which are the subject A condition A warranty Both (a) and (b) None of above C
there of may be
Section 31 of the Sale of Goods Act deals
10 B
with duties of seller To show goods To deliver goods To change goods None of above
Section_____ to______, of the Sale of
11 Goods Act deals with performance of the 31 to 44 25 to 40 Both (a) and (b) None of above A
contract
Where an unpaid seller has made part
Of lien on the Sale to any other
12 delivery of the goods he may exercise his Return on the remainder None of above B
remainder person
right________
Section 57, of the Sale of Goods Act, deals Suit for damages for Suit for damages for
13 Suit for price None of above B
with non-delivery non-acceptance
Section 58, of The Sale of Goods Act
14 provide right of suit for Specific Seller Buyer Both (a) and (b) None of above A
Performance of Contract on the part of
Where a third party is prevented from
making the valuation of goods, as price to
15 be paid by the buyer to the seller, by a party sue for specific  sue for damages both (a) and (b) either (a) or (b). A
to the agreement, under section 10 of the performance
Sale of Goods Act, 1930, the other party has
a right to

Where the price of the goods under a

contract of sale is to be fixed by the liable to pay the liable to pay the not liable to pay any liable to pay the
16 valuation of a third party who fails to fix reasonable price of the minimum price of the price until fixed by the maximum retail A
the valuation, but goods are supplied to the goods goods valuer price.
buyer, under section 10 of the Sale of Goods
Act, 1930 the buyer is
Where the price of the goods under a
contract of sale has to be determined by the
valuation of a third party, and the valuer become
17 become void be voidable remain valid B
fails or refuses to make the valuation, the impossible.
contract under section 10 of the Sale of
Goods Act, 1930, shall
can be delegated
can be delegated by
The duty of fixing value for the goods, can be delegated by the cannot be delegated by the valuer with
18 the valuer with the B
under section 10 of the Sale of Goods Act, valuer by the valuer the leave of the
consent of the buyer
1930 court.
the average of the
highest and the
the one which the
19 The prima facie evidence of a reasonable the current price the market price lowest price in a B
court fixes
price within the meaning of section 9 of period of one
the Sale of Goods Act, 1930 is year.
 If a contract for sale of goods is for sale of avoid the contract so
two or more things under an entire not avoid the contract far as it relates to the
20 avoid the whole contract  either (b) or (c). D
contract, the perishing of some of them at all goods perished and
would not the whole contract
A contract of sale of goods, on goods at any time
having been damaged/perished subsequent before the property in after the property in irrespective of
only (b) not (a) or
21 to the formation of the contract under goods has passed to the goods has passed to whether the property A
(c).
section 8 of the Sale of Goods Act, 1930, can buyer the buyer in goods has passed to
be avoided the buyer or not
partly on the buyer the seller if the
22 In a sale , if the goods are destroyed , the the buyer the seller and partly on the price is not bee A
loss falls on seller paid
 Sale of goods act deals only with the goods
23 Immovable Movable Specific All of the above B
which are ______ in nature
________ is stipulation which is collateral
24 Condition Warranty Guarantee B
collateral to the purpose of the contract contract
___________ is the concept of LET
25 Information Center unfair trade practice Caveat Emptor Buyer kingdom C
the Buyer Beaware
The Subject matter of the contract under
26 Money Goods Immovable goods All of the above B
the sale of goods act must be
In Agreement to sell the transfer of
27 property in goods from seller to the buyer At the end of the contract Immediately In future Date Both b and C C
takes place
Ascertain goods is otherwise called as
28 Specific generic future None of the above A
______ goods
______ cannot be the subject matter of
29 Gas Electricity Money All of the above C
the sale of goods
In case of sale the seller can sue the buyer
30 Damages Price interest Fraud B
for the ___ in case of breach
Which of the below is not included in goods
31 Forming part of the land Stocks Actionable Claims Crop C
as per Sale of goods ACT 1930
when the buyer does
not intimate the
when goods are
in case of implied purpose to the seller When goods are sold
32 The Doctrine of Caveat emptor aqpplies sold by A
condition and warranties and depends upon his by sample
discription
own skill and
judgement
If a Sale is by sample as well as by
both sample and either sample or
33 description,the implied condition is that Sample description C
description description
the foods shall correspond with
In case of breach of a warrantu, the buyer refuse to pay the
34 repudiate the contract claim damages only return the goods B
can price
essential to the main not essential to the collateral to the main
35 A condition is stipulation which is purpose of the contract of main purpose of purpose of the None of the above A
sale contract of sale contract of sale
In a sale , there is an implied condition on a) has a right to sell the b) is in possession of c) will have the right d) will acquire
36 A
the part of the seller that he – goods the goods to sell the good
The goods which form the subject of a Sale (b) Existing and (c) Existing, Future
37 A
can be:  (a) Existing Goods Future Goods and Contingent Goods (d) None of these
If the seller make use of Pretended bidding
38 A
to raise the price the sale is:  (a) Voidable (b) Void (c) Illegal (d) None of these
There is an implied
The seller guarantees the The buyer himself condition that the
39 quality or fitness for any takes the risk as to the buyer can repudiate B
The maxim of Caveat Emptor in a contract particular purpose quality and condition the contract at his
of sale means:  supplied  of the goods option  None of these
A agrees to sell to B “”a hundred tons of
40 B
oil” –the agreement is:  Valid b) Void (c) Voidable (d) Partially valid
A contract of sale of goods is a contract none of the
41 whereby the seller transfers or agrees to in goods to the buyer options C
transfer the property:  for a price in goods  for a price    provided     
every kind of
movable
property, other
42 D
 property other than than actionable
According to Section 2(7) of Sale of Goods, every kind of movable actionable claims and every kind of claims and
‘goods’ means:     property money        property   money   
that will be a contract for that will be a contract that will be a
43 where trees are sold to be cut and then sale of immovable for sale of movable that will be a contract contract of future B
taken away by the buyer; property.      property.   of existing goods    goods 
may be implied from
44 the conduct of the all options are D
A contract of sale may be made in writing  by word of mouth,     parties. correct      
where the transfer of the property in the
45 goods is to take place at a future time, the conditional B
contract is called sale    an agreement to sell. 
provisional sale     sale       
In a contract of sale of goods, Breach of a repudiate the contract none of the
46 condition gives the aggrieved party right and also claim options C
to:           repudiate the contract   claim damages  damages           provided    
The goods shall be
free from any defects
rendering them un-
The buyer shall have a merchantable, which
47 D
reasonable would not be apparent
The bulk shall correspond opportunity of on reasonable all points given as
The implied conditions, in a sale by sample with the sample in comparing the bulk examination of the option A, B and
include:          quality   with the sample sample C     
In a contract for sale of goods, Buyer may none of the
48 have an action, in respect of physical against the aginast the dealer as options is A
injuries caused by defect in the goods;    manufacturer      against the dealer  also the manufacturer correct     
A contract is deemed to have become
impossible of performance under the
supervening Expected all given options
49 circumstances that the subject matter of a inherent impossibility B
impossibility    impossibility  are correct
contract is destroyed for no fault of the
promisor. Such circumstances are called: 
 A contract is discharged by death of the
promisor, by insolvency of the promisor,
by entering into a new contract where
supervening  all given options
50 inferior rights under the previous Operation of law by breach    A
impossibility are correct    
agreement are merged in the new one;
such discharge of a contract is called:
discharge by    
 BUSINESS REGULATORY FRAMEWORK
CHAPTER 4 : E - Transaction
Correct
Sr. No Multiple Choice Questions A B C D
Answer
Which section of IT Act deals with the
1 appointment of Controller of certifying Section 17 Section 15 Section 10 Section 5 A
authorities 
What is the maximum penalty for damage
to Computer, Computer systems,
2 unauthorized access, download of data, Rs. 50 lakh Rs.1 crore Rs. 5 crore Rs,75 lakh B
infecting with virus, denial of access etc as
per Section 43
What is the penalty for publishing images 5 years imprisonment 3 years imprisonment
3 of a person's private parts without Life imprisonment or 5 lakh rupees or 2 lakh rupees None of the above C
consent, as per IT Act 2000? penalty or both penalty or both
Which section of IT Act deals with the legal
4 Section 4 Section 2 Section 5 Section 6 A
recognition of electronic records?
Which section of IT Act deals with the
5 appointment of Controller of certifying Section 5 Section 10 Section 15 Section 17 D
authorities?
Three year Three year Three year
What is the punishment for hacking of imprisonment or 10 imprisonment or 5 imprisonment or
6  Life Imprisonment C
computers lakh rupees penalty or lakh rupees penalty or 2 lakh rupees
both both penalty or both
The section deals with the use of electronic
7 records and digital signature in  Section 6  Section 5  Section 4  Section 3 A
Government and its agencies
The things carried out by means of
electronic data interchange and other
8 E - communication e - governance e - records e- commerce D
means of communication is commonly
referred as
The authentication to be effected by the
9 use of assymetric crypto system And has Public Key Private Key Digital Signature e- commerce C
function is known as
Digitial Signatures created and verified
10 Programme graphical coding HTML cryptography D
using
11 Private key is used to Digitally sign Verify the sign verify the documents make payment A
12 Public key is used to Digitally sign Verify the sign verify the documents make payment B
The central government may appoint a
___ of certifying authority who shall
13 commissioner controller executive president B
excercise supervision over the activities of
certifying authorities
_____ means a person who has been
licencing
14 granted a license to issue a Digital Controller Certifying authority certificate issuer B
authority
signature certificate
E - records and digital signatures are used Filling any form in the
15 issue of grant making payment All of the above D
to government
Controller of Certifying Authorities (CCA) Ministry of
16 C
work under ? Prime Minister office Reserve Bank of India Communication & IT autonomous body
Which is the Act which provides legal None of the
17 IT (amendment) Act 2008 Indian Penal Code IT Act 2000 C
framework for e-Governance in India above
What is the time limit for filing appeal
18 against the order of Cyber appellate 30 days 90 days 60 days 45 days C
tribunal?
Which is the appeal court on the orders
19 A. Munsiff Court A. District Court A. High Court A. Supreme Court C
issued by Cyber appellate tribunal?
What is the term of the office of the
20 presiding officer of Cyber appellate 3 years 4 years 6 years 5 years D
tribunal?
Verification of electronic records is
21 C
possible through Public Key Private Key Digital Signature e- commerce
As per IT act those who fail to furnish
22 D
documents will be penalised upto 5000 per day 50000 25000 150000
The certifying authosrity empowers to
issue a Digital signature certificate shall
23 A
have to procure a license from the _____ controller of certifying
to issue digital certificate authority central governement state government Commissioner
____ is a person in whose name the
24 B
Digital certioficate is issued certified authority subscriber holder controller
The ____ has the power to suspent or
25 B
revoke Digital signature Certificate commissioner Certifying authority subscriber controller
 BUSINESS REGULATORY FRAMEWORK
CHAPTER 5 : The Consumer Protection Act
Correct
Sr. No Multiple Choice Questions A B C D
Answer
any consumer
association registered the Central
1 D
As per section 2(1)(b) of Consumer Protection Act under the Companies Government or any
1986, "complainant" means  a consumer Act, 1956 State Government, All the above
As per section 2(1)(c) of Consumer Protection Act
1986, "complaint" means any allegation in writing made
by a complainant that a trader or service provider has
charged for (a) fixed by or under any law for the time
2 being in force D
(b) displayed on the goods or any package containing such
goods
(c) displayed on the price list exhibited by him
(d) (a), (b), (c) &
(d) agreed between the partiesthe goods or service a price
 (a), (b) & (c) (b) (a), (c) & (d) (c) (a), (b) & (d) (d)
in excess of the price 
consumer association
3 In case of death of a consumer who can prefer compliant his legal heir or registered under the No one can prefer A
under Section 2(1)(b) of Consumer Protection Act 1986 representative State Government Companies Act, 1956 complaint
As per Section 2(1)(a) of Consumer Protection Act 1986,
'appropriate laboratory' means a laboratory
or organisation (i) recognised by the Central Government
(ii) recognised by a State Government
4 D
(iii) financed or aided by the Central Government or a
State Government for carrying out analysis or test of any
goods with a view to determining whether such goods
suffer from any defect (a) (i) & (ii) (b) (ii) & (iii) (c) (i) & (iii) (d) (i), (ii) & (iii)
5 The following is not a consumer a. The insurance company  b. A licensee to run a phone  c. A lottery ticket holder d. All the above  D
The central consumer protection council shall consist of
6 D
the following members a. The minister in charge of b. consumer
Such member affairsofinother
thec.central
official
The Chief
govt,
or nonjustice
who official
shall
of high members
d.
beBoth    
court 
itsA&B  
chairman 
representing such   interest as may be presc
The central council shall meet as and when necessary but
7 at least ___ meeting of the council shall be held every A
year a. One  b. Two  c. Three      d. Four   
Members of state consumer protection council should not
8 C
exceed a. Two  b. Five  c. Ten  d. Three 
The chairman of the district consumer protection council
9 B
is a. District magistrate                                        
b. Collector of the District  c. MP of the district                                          
d. None of these       
Which one of the following know as Consumer disputes
10 D
redressal  agency? a. District forum   b. State commission  c. National commission d. All the above
11 President of district forum is a. Collector of the district  b. A person who are qualified c. A person
as advocate 
who are qualified d. None to beof a district judge  C
these 
12 The disqualification of the member is a. Has been convicted and sentenced  b. Is an undercharged
to imprisonment insolvent 
c. Isfor
of unsound
an offence mind whichd., in   All the above 
opinion of the stateD govt involves moral turp
Every appointment of district forum shall be made by the
13 state govt on the recommendation  of a selection D
committee consisting of the following a. President of the state commission b. Secretary, shall law
bedept
a chairman 
ofc.the
Secretary,
state shall incharge
be a member  ofd. dept
All dealing
the above             
with consumer affair shall be a another
Who will working as president in case absence of the
14 a. Governor   b. Chief minister  c. A sitting judge of Highd.court                      
Chief justice of highcourt  C
president of state commission
15 Jurisdiction of district for is rupees a. Exceed twenty lac                                        
b. exceed 50 lac  c. Up to twenty lac                                            
d. twenty to fifty lac      D
16 The complaint shall ordinarily be decided within a. Twenty one days from theb.date Thirty on which
days from the complaint
the date
c. Forty
onwas
which
fivereceived 
days thefrom complaintthed. Nodate was
time
onreceived 
which
limit         
the complaint
A was received 
Where the complaint alleges a defect in the goods which
cannot be determined without proper analysis or test of
17 the goods, the sample of goods forwarded to appropriate a. 30  b. 40  c. 45  d. 60  C
laboratory for laboratory test.  Such types of case finding
report within ______days
Every complaint shall be heard as expeditiously as possible
and endeavour shall be made to decide the complaint
within a period of ____from the date of receipt of notice
18 a. 3 Months, 5 months  b. 45 days, 90 days  c. 30 days, 90 days  d. None of these   A
by opposite party where the complaint does not require
analysis or testing of commodities and within____, if it
requires analysis or testing of commodities.
Provided that the minimum amount of sum so payable
shall not be less than ____ of the value of such defective
19 C
goods sold or services provided, as the case may be to such
consumers a. Rs 25000/-                                         
b. 10%  c. 5%                                                      
d. None of these            
Any person aggrieved by an order made by the District
20 forum may prefer an appeal such order to the State D
commission within a. 60 days                                              
b. 90 days  c. 1 month                                             
d. Thirty days   
Any person prefer an appeal to state commission shall be
21 C
deposited amount in prescribed manner a. Fifty percent of that amount                       
b. Twenty five thousandc.rupees  Whichever is less of the d. above
None of A&B        
these  
Appropriate laboratory means a  laboratory or
22
organization a. Recognized by Central Government  b. Recognized by state government  c. Both the above  d. None of the above          
23 What is the minimum age to be appointed as the member of consumer
35 dispute redressal40 forum/commission 25 20 A
24 For appointing as member of the consumer dispute redressal 15forum/
years commission, at least 5 Years
.................. years experience
10 Years in dealing with problems 7 years relating to economics, C law, commerce, accou
Minister in
Secretary in charge of charge of the
the Department Department
25 A
Who is the Chairman of the selection committee dealing dealing
constituted for appointing chairman and members of the President of the State  Chief Justice of the with consumer affairs with consumer af
District Forum (CDRF)? Commission   High Court in the State fairs in the State
(d) Secretary in
(c) A sitting Judge of charge of the
In the absence of the President of the State Commission, Minister in charge of the that High Court Department
26 C
who will act as Chairman of the Selection Department dealing nominated by dealing
Committee constituted for appointing chairman and with consumer affairs in (b) The Chief Justice the Chief Justice of the with consumer af
members of the District Forum (CDRF)? the State of the High Court High Court   fairs in the State
The salary or honorarium and other allowances payable to
27 the members of the District Forum shall be  be prescribed (a) The Governor of the (b) The National (c) The Central (d) The State C
by .................... State Commission Government Government
 (d) Six  years or
(b) Six years or up to up to the age of
28 (a) Five years or up to the the age of sixty five (c) Five years or up to sixty seven years, A
Every member of the District Forum shall hold office for a age of sixty five years, years, whichever is the age of sixty years, whichever is
term of .............  whichever is earlier earlier whichever is earlier earlier
The District Forum shall have jurisdiction to entertain
complaints where the value of the goods or services and
29 B
the compensation claimed does not exceed .....................
rupees (a) 50 lakhs (b) 20 lakhs (c) 10 lakhs (d) 5 lakhs
Each District Forum shall consist of ............. number of
30 members (excluding president), one of whom shall be a B
woman (a) 4 (b) 2 (c) 3 (d) 5
 BUSINESS REGULATORY FRAMEWORK
CHAPTER 6 : The Intellectual Property Rights Act
Correct
Sr. No Multiple Choice Questions A B C D
Answer
Intellectual Property Rights (IPR) protect the use of Commercial
1 D
information and ideas that are of Ethical value Moral value Social value value
The following can not be exploited by assigning or by
2 C
licensing the rights to others. Patents Designs Trademark All of the above
b. monopoly granted c. exclusive privilege
3 a. knowledge disclosed to for the term of the of making, selling and d. None of the B
In ‘quid-pro-quo’, quo stands for the public patent using the invention above
is capable of
distinguishing the may includes shapes
4 Trade mark goods or services of of goods or D
one person from combination of
is represented graphically those of others colours All of the above
d. 60 years after
5 b. 25 years after the c. 40 years after the the death of D
In India, the literary work is protected until a. Lifetime of author death of author death of author author
b. composition of c. mode or principle of d. None of the
6 C
Design does not include a. features of shape lines or colours construction above
If Francesca invents a new process for recording music,
7 A
she will likely apply for a: Patent Trademark Copyright Industrial design
The rights of an author or artist with respect to his or her
8 A
creation are governed by the law of: Patent Trademark Copyright Industrial design
9 A street vendor on Bloor Street is selling fake "TAGG" Copyright Trademark Patent Industrial design B
watches.
Which UnderIntellectual
is false? which area of intellectual
property rightsproperty
may be would Maintain Secrecy
10 Registration use of Confidentiality Assignment D
the TAG Company
protected by: likely seek a remedy?
Reeti has designed a uniquely shaped walker for senior
citizens, which can be collapsed and, with the aid of two
levers, used as a chair. Reeti's design is in commercial
11 D
production under the name of Supportive Stroller. Which Patent;
types of intellectual property would most likely apply to Patent; copyright; Copyright; trademark; Trademark; industrial trademark;
Reeti's creation? trademark industrial design design; trade secret industrial design
Which is not a remedy for infringement of intellectual
12 C
property rights? An accounting for profits An injunction Specific performance Damages
The utterance of a
false statement
about another's
The public utterance goods or services
13 Passing off is
of a false statement of that is harmful to
Incitement to break the Presenting another's fact or opinion that the reputation of
contractual obligations of goods and services as harms another's those goods or
another one's own reputation services
b. composition of c. mode or principle of d. None of the
14 C
Design does not include a. features of shape lines or colours construction above
Which of the following is (are) included in Geographical
15 D
indications of Goods a. Handicraft b. Foodstuff c. Manufactured d. All of the above
Headquarter of World Intellectual Property Organization is D. Geneva,
16 D
located in A. Rome, Italy B. Bern, Switzerland C. Berlin, Germany Switzerland
First World Intellectual Property Organization on
17 2005 2007 2011 2009 C
Changing Face of Innovation was published in
International organization, providing a stable
18 environment for marketing of intellectual property A
products, is known as A. WIPO B. UPU C. IBRD D. UNDP
Intellectual property rights and _______________ copyright trademark
19 A
are two of the most important developing areas of law. Cyber law infringement patent law infringement
What action would a person bring against someone who Violation of
20 C
steals a trade secret? Economic Espionage Act Infringement action Misappropriation trademark law
21 To be patented, an invention must be  non-obvious useful noble all of the above D
The inventor’s Federal
22 C
Who can challenge the issue of a patent? Business competitors partners or employees Anyone government
Order requiring
the destruction of
23 B
Which of the following can a successful plaintiff in a Royalties for the next Injunction preventing the infringing
patent infringement suit not recover? Money damages ten years future infringements article
A patent may not be granted if the public used the
invention for more than one year prior to the filing of the American
24 A
patent application pursuant to the World Trade Inventors
_______________. fair-use doctrine public-use doctrine organization treaty Protection Act
The right to prevent A mark used to
The ornamentation or others from copying A monopoly to make, distinguish the
25 D
shape of a functional or modifying certain use, or sell an source of goods
A trademark is object, such as a chair works invention or services
To qualify for federal
Trademark registrations Trademark law is protection, a mark
26 can be renewed for an intended to protect must be distinctive Surnames alone A
unlimited number of ten- the owner’s original and have a "secondary can be
Which of the following statements is true? year periods work. meaning." trademarked.
an order requiring the
27 In a successful copyright infringement case, the plaintiff profits made by the destruction of the an injunction prevent D
can recover _______________. copyright infringer infringing works future infringements all of the above
Intentional
reproduction in a Reproduction by a
28 C
Which of the following examples would not fall into the Brief quotation in a news broadcast of a teacher to
scope of the fair-use doctrine? report Use in a parody reported event illustrate a lesson
The Green Family
29 C
Which of the following would not qualify as a mark? Toys "R" Us Reebok North Fun Experience
 Defendant infringed The use of the mark is
plaintiff’s mark. likely to cause
What must a plaintiff prove in a successful trademark confusion or deception
30 D
infringement case? Defendant used the of the public as to the
mark in an origin of the services
unauthorized manner. or goods. All of the above.
In the 1980s, which organization began using the National Science U.S. Department of U.S. Patent and U.S. Copyright
31 A
Internet? Foundation Defense Trademark Office Office
Commercial use domain names will normally use the
32 C
following suffix in their website address. .net .gov .com .org
If Donald Trump wanted to start a website called
The Anti-
donaldtrump.com and found out someone had purchased
The Digital Millennium Cybersquatting
33 the domain name and was refusing to settle it unless Mr. both A and B none of the above B
Copyright Act Consumer Protection
Trump paid an enormous sum of money, Mr. Trump could
Act
use the following law as a remedy:
he owner/creator
The work does not is a British citizen
34 The work is of a type that have to be produced in The work satisfies the / the work was B
Which of the following is NOT a necessary criteria for is protected under the a tangible form - e.g. requirement of first published in
protection of the copyright holder? CDPA 1988. thoughts qualify originality the UK.
The life of the
35 The duration of protection of copyright in relation to creator plus 70 D
literary and dramatic works is? 50 years The life of the creator 70 years years
The remedies available for infringement of copyright does
36 C
NOT include which of the following: Injunction Account of profits Rectification Damages
Protection under the Registered Design Act 1949 exists for
37 A
a maximum period of 25 years 3 years 10 years 5 years
The 'apple' logo of the Apple Corporation is an example of
38 D
which of the following? Copyright Patent Design righ A trade mark
An invention that
would not have been
39 obvious to someone C
Which of the following will allow for a patent to be The presentation of with skill and A new form of
successfully applied? A new dramatic art. information. experience in the area. doing business
In relation to patents, where an employee creates an It depends on the
invention during the normal course of employment and it The board of directors specific nature of
40 B
relates to his/her duties at work, the intellectual property of the company the the employment
belongs to which of the following? The employee. The employer. employee works for contract.
 BUSINESS REGULATORY FRAMEWORK
CHAPTER 7 : The Negotiable Instrument Act
Correct
Sr. No Multiple Choice Questions A B C D
Answer
may be conditional or
unconditional
1 C
The undertaking contained in a promissory note, to pay a depending upon the
certain sum of money is conditional unconditional circumstances none of the above.
A transferee
cannot get better
title than a
The collecting banker transferor and he
2 D
should confirm about the Collection of not also cannot
genuineness of holder The not negotiable negotiable cheque will transfer a better
before collection of his cheque cannot be not get protection title than he
Not negotiable crossing means: cheque further negotiated. under NI Act possesses.
Authorised partner
3 A bill is payable to or to order of a non-trading firm. through power of A
Endorsement can be made by: Any partner of the firm All the partners attorney Any two partners
A plain sheet appended to
a negotiable instrument Conditional Enclosures to the
4 A
for the purpose of making endorsement of a A plain sheet balance sheet of
The term `allonge’ refers to: endorsement thereon negotiable instrument appended to a will the bank
demand is in
order, but
A customer of Delhi branch of the bank having Multi-city demand is in order. to demand money all Lucknow branch
5 cheque book under the centralized business solution (CBS) Lucknow branch bank branches are cannot get valid B
demands payment of a cheque at Lucknow branch of the should pay. Bank considered one unit discharge as
bank and there is connectivity between these two would get proper whether the cheque is contract is with
branches: it is not a proper demand discharge. normal or multi-city Delhi branch
A cheque is presented for payment through clearing house
6 but due to certain reasons, it is returned unpaid. The Negotiable Instruments Banking Regulations RBI clearing D
returning memo is enclosed to comply with: Act RBI Act Act House rules
__________ means something transferable from one
7 B
person into another person for a consideration Instrument Negotiable Negotiable Instrument all of the above
____ means a written document by which some legal
8 A
rights are created in favour of some person Instrument Negotiable Negotiable Instrument all of the above
Negotiable Instrument means a promiosory note, bill of Either bearer or neither bearer or
9 C
exchange, or cheque payable at _____ bearer order payable order
A negotiable instrument is freely transfer , by delivery it a
10 B
/ an ___ instrument order bearer both A and B none of the above.
A negotiable instrument is freely transfer , by
11 A
endorsement it a / an ___ instrument order bearer both A and B none of the above.
who transfer the the on whose name it is
12 B
The transferee is the one instrument transfered who enchases about it none of the above.
13 The instrument must be taken in good faith and with a Interest consideration legal relation business motive B
when an instrument has been lost it is presumed that it
14 expired duly stamped stolen misplaced B
was
__ is An instumen tin writing containing an
unconditional undertaking signed by maker to pay a
15 Promisory note Cheque bill of exchange none of the above. A
certain sum of amount only to , or to the order of a certain
person or to the bearer of the instrument
16 The number of parties to the bill of exchange is 2 4 6 3 D
17 The number of parties to the Promisory note is 2 4 6 3 A
18 Sec 4 of the negotiable instrument deals with Promisory note Bill of Exchange cheque none of the above. A
19 Sec 5 of the negotiable instrument deals with Promisory note Bill of Exchange cheque none of the above. B
20 Sec 6 of the negotiable instrument deals with Promisory note Bill of Exchange cheque none of the above. C
21 _____ cannot be a bearer instrument Promisory note Bill of Exchange cheque none of the above. A
22 Acceptance is ____ in bill of exchange Compulsory optional not compulsory adequate A
The provision for making the payment of amount
23 18 19 20 21 A
mentioned in words in a cheque is described u/s...of NI Act
A bearer cheque is issued by one Mr. Ashok in favour of
Yes, the cheque is
Aman, but he forgets to hand over the cheque to Aman. No, endorsement is also No, delivery is also No, endorsement and
24 drawn in his B
Aman however, picks up the cheque in his absence from needed needed delivery both required
favour
his table. Whether the negotiation has taken place?
Drawer to both debtor to one and creditor to another in
25 Promisory note Bill of Exchange none of the above. B
case of ___ cheque
Liability of maker is __________ in Case of bill of
26 D
exchange Primary unlimited unconditional secondary
27 ______ is an order to pay the third party Promisory note Bill of Exchange cheque none of the above. A
28 A promisory note bill of exchange can be made payable on demand on a specific date after a specific date all of the above D
To calculate the maturity date of negotiable instrument
29 B
the drawing date to be _____ for counting included excluded considered none of the above.
If the instrument is not 'on demand ' ______ days of
30 7 5 3 4 C
grace is granted
When a negotiable instrument may be construed either as Ambiguous Instrumen
31
a promissory note or bill of exchange, law recognizes it as:  Promissory note  Bill of Exchange  t None of these C
When a bill of exchange has been dishonoured, the holder
32 can cause such dishonour to be certified by a notary public, None of these D
such certificate is a  Claiming Presentment Protest (Noting)
If a cheque is transferred to any person to constitute him
33 B
as a holder, the instrument is said to be:  Delivered Negotiated Presented None of these
the cheque will be
the amount stated in returned to the bearer
34 the amount stated in figures shall be the by the banker for A
In a cheque issued by A to B, amount is stated differently words shall be the amount amount ordered to be correction by the
in figures and in words:  ordered to be paid  paid drawer  None of these
35
 BUSINESS REGULATORY FRAMEWORK
CHAPTER 8 : Arbitration and Concilation
Correct
Sr. No Multiple Choice Questions A B C D
Answer
to comprehensively cover
international and
commercial arbitration
1 A
and also conciliation as to cover only to cover only
Which among the following options is the main purpose of also domestic arbitration domestic arbitration international
the Arbitration and Conciliation Act, 1996 and conciliation and conciliation arbitration None of above
the power and
the power and the power and jurisdiction to call
2 C
The power of court to refer parties for arbitration would the power and jurisdiction jurisdiction to review jurisdiction to appoint for another
and must necessarily include, imply and inhere in it to advise the parties the award the arbitrator arbitrator.
An arbitral award made under Part l of the Arbitration and international
3 A
Conciliation Act, 1996 shall be considered as a domestic award foreign award general award award.
on the date on which a on the date when the on the date when
request for a dispute to be respondent gives the statement of
4 referred to arbitration is consent to the on the date when the claim and written A
received by the appointment of the arbitrator issues submission of
Arbitral proceedings commence respondent arbitrator ' notice of the parties defence is made.
acts in accordance
with privately chosen
5 An arbitrator: procedure so far as D
is chosen and paid by the that is not repugnant both (a) and (b)
disputant to public policy only (a) is correct are correct.
must be connected with
6 An arbitral award: the subject-matter of the must be founded on both (a) and (b) are D
dispute arbitrated principle of trust correct only (a) is correct
has to be in writing
and signed by the
7 An arbitral award B
has to be in writing but members of the either (a) or (b) or
need not be signed arbitral tribunal may be oral (c).
for
8 Inability of lawyer to attend arbitral sitting due to illness is for setting aside the for sending the case to reappointment A
ground award for adjournment court the arbitrator.
an exchange of
letters, telex, an exchange of
telegrams or other statements of claim
A written arbitration agreement is authentic if it is means of and defence in which
9 D
contained in: telecommunication the existence of the
which provide a agreement is alleged
a document signed by the record of the by one party and not All the options
parties agreement denied by the other are correct.
the concept of the concept of
10 The term ‘fairness’ embodies: B
the concept of justice equality unbiasness none of the above.
the conciliator shall
authenticate the
After the settlement agreement is reached between the
11 the conciliator makes an settlement agreement the conciliator shall B
parties to conciliation:
award stating the reasons and furnish a copy refer the matter to the
thereof thereof tribunal none of the above
by written declaration
by written declaration of the parties
of the parties and the addressed to the
conciliator to conciliator to the
12 The conciliation proceedings shall be terminated: D
by signing of the terminate the effect that conciliation
settlement agreement by conciliation proceedings are
the parties, on the date of proceedings on the terminated, on the
agreement date of declaration date of declaration all of the above.
the parties come to
any settlement only
after the agreement '
13 In Conciliation: the parties come to a of settlement or B
the parties come to settlement without conciliation is signed
settlement after the award making of any award in front of the
of the conciliator by the conciliator conciliator all of the above.
when written
when both the parties invitation to when both the parties
14 Conciliation proceedings shall commence: B
comes to a written conciliation is made agree for conciliation
agreement to the other party mutually none of the above
the party against whom
the award is invoked was enforcement of the
15 The enforcement of a foreign award may be refused if: not given proper notice of award‘ would be D
the appointment of the contrary to the public
arbitrator policy of India none of the above both (a) and (b).
After the arbitral award is made, each party shall be a signed copy of the a photocopy of the an unsigned copy
16 B
delivered the original award award award of the award
@ 24 % per
@ 12% per annum @ 18% per annum annum from the
17 @ 6% per annum from from the date of the from the date of the date of the award C
A sum directed to be paid by an arbitral award shall carry the date of the award till award till the date of award till the date of till the date of
interest the date of payment payment payment payment.
An arbitral award shall be enforced in the same manner as
18 C
if it were a decree of local authority the court the tribunal both (b) and (c)
the time for making an
application for setting
aside the arbitral award an application for
19 C
has expired and no such setting aside the
application has been arbitral award has neither (a) nor
An arbitral award becomes enforceable when made been refused either (a) or (b) (b).
 an individual who is a
national of, or
20 a body corporate which is habitually resident in D
To invoke international commercial arbitration it is incorporated in any Government of a any country other than
necessary that at least one of the parties is: country other than India foreign country India. all of the above.
consensual
21 B
Private arbitration is also described as: integral arbitration arbitration domestic arbitration none of the above
when a dispute that
when the parties involved arose between the
in commercial transaction parties to a business when the parties agree
22 choose to incorporate transaction could not to submit to B
arbitration clause as a be settled through arbitration ‘all or any’
part of agreement to refer mediation or differences which have
Ad-hoc arbitration can be sought: their future disputes conciliation arisen or may arise only (b) and (c).
where consent of the
23 imposed on the parties by a compulsory parties is not D
Statutory arbitration is: operation of law ' arbitration necessary all of the above.
The definition of ‘Arbitral Tribunal’ under the Arbitration sole arbitrator or a panel panel of arbitrators
24 A
and Conciliation Act, 1996 means of arbitrators sole arbitrator only only ‘ presiding officer.
of its own,
The arbitral tribunal may arrange for administrative with the consent" of the with the consent of without the consent of irrespective of the
25 A
assistance parties the claimant the parties consent of the
parties.
on becoming aware of
the reasons of
26 on becoming aware of the challenge after the C
A written statement of the reasons for the challenge to the constitution of the appointment of the neither (a) nor
arbitral tribunal has to be sen arbitral tribunal arbitrator either (a) or (b) (b).
60 days of
30 days of becoming 7 days of becoming becoming aware
27 15 days of becoming aware of the aware of the of the A
A written statement of the reasons for the challenge to the aware of the constitution constitution or the constitution or the constitution or
arbitral tribunal has to be sent within or the reasons reasons reasons the reasons
can be raised at any can be raised at
must be raised before or may be raised after time before the any time before
28 A
at the time of submission the submission of the conclusion of arbitral the making of
A plea questioning the jurisdiction of the arbitral tribunal of statement of defence statement of defence proceedings arbitral award.
29 During the arbitral proceedings the arbitral tribunal can make interim award may require a party to both (a) and (b) either (a) or (b). C
The members of Statutory Arbitral Tribunals are provide appropriate
30 security B
appointed by: parties themselves State Centre none of the above
Authority of an appointed arbitrator or umpire can be (a) At the discretion of (b) With the leave of
31
revoked:  either party the Court  (c) Irrevocable (d) None of these C
Sr.
No Question Option 1 (a) Option 2 (b) Option 3 (c) Option 4(d)
1 Acceptance of proposal should be unconditional and ____ Complete Legal Illegal Uncompleted
2 Contract without consideration is_____ and void Void able Illegal Legal Improper
3 Each ___ is not contract Agreement Acceptance Insurance Promise
The contract is that where implementation of agreement can be
4 Law Parties Proposal Advocates
done by ____
5 Minor cannot be done as promissory but he can be done as Promises Implement or of promise Adult Acceptance
………..
All damages which he may
be compelled to pay in any All sums which he may
All costs which he may
suit in respect to any have paid under the terms
6 be compelled to pay in All of the above
matter to which he any compromise of any
any such suit
The promisee in a contract of indemnity, acting within the scope promise to indemnity such suit
of his authority, is entitled to recover from the promiso : applies
Which one of the following is correct sequence in the claim for Contract, breach, Offer, no acceptance, Acceptance, no
7 Contract, offer, damages
damage for breach of contract ? damages damages consideration, damages
Damages awarded with a view to punish the party who commits
8 Liquidated damages Punitive damages Special damages General damages
the breach of contract are known as :
Every promise and every set of promises, forming the
9 agreement contract offer Acceptance
consideration for each other, is an
cannot be enforceable by is invalid for want of
10 is valid in law. has no consensus ad idem.
Agreement to murder a person law. consideration.
A promise to give 5000 per month pocket money to his son B. If B has no remedy B can accept a lower
11 B can sue his father. B has to give 5000 to his father.
A does not give the pocket money against A. pocket money also.
rights and obligations of obligations of the parties mutual understanding mutual lawful rights and
12
A contract creates the parties to it. to it. between the parties to it. obligations of the parties to it.
In agreements of a purely domestic nature, the intention of the to be proved to the required to the extent of
13 presumed to exist. not relevant at all.
parties to create legal relationship is satisfaction of the court. consideration.
A and B enter into a contract to marry each other. Before the time
14 void. illegal. valid. voidable.
fixed for the marriage, A goes mad. The contract becomes
A makes a contract with B to beat his business competitor. This is
15 valid contract. illegal agreement. voidable contract. unenforceable contract.
an example of
16 ……………… is made by words written. Express contract implied contract Tacit contract Unlawful contract
Where a contract has to be inferred from the conduct of parties, it
17 express contract. implied contract. tacit contract. unlawful contract
is called
Drawing cash from ATM, sale by fall of hammer at an auction
18 express contract. implied contract. tacit contract. unlawful contract
sale, etc., are example of
. …………….. is a one-sided contract in which only one party
19 Void contract Illegal agreement Unilateral contract Bilateral contract
has to perform his promise or obligation.
Where the obligation in a contract is outstanding on the part of
20 void contract. illegal agreement. . unilateral contract. bilateral contract
both parties, it is called
Where a particular type of contract is required by law to be in
writing and registered, it must comply with the necessary
21 void contract. illegal agreement. valid contract. unenforceable contract.
formalities as to writing, registration and attestation. Otherwise,
such a contract is
All illegal agreements are void; but all void agreements are not
22 True Partly true False None of the above
illegal.
should be made to the
should be made to
other who is related to him. may also be made to
23 another who may or may should be made to
An offer and its acceptance is the basic requirement of an another before the himself.
not be related to him.
agreement and as per this requirement an offer by one party Registrar
24 According to enforceability, the contracts may be classified as valid contracts. void contracts. voidable contracts. all of the above
that parties do not intend that the parties do not intend
that parties do not intend that parties intend to
25 to make legal and social to create legal relations
to create social relations. perform them.
In social agreements usual presumption is relations. between them.
A promised to marry B. Later on B died. This contract of is void from very
26 becomes void. is valid. is illegal now.
marriage beginning.
An implied contract is one which comes into existence on account non-availability of a inability of the parties to
27 conduct of the parties. directions given by a court
of paper for writing. write or speak.
A contract in which, under the terms of a contract, nothing
28 executed contract. executory contract. unilateral contract. none of the above.
remains to be done by either party is known as
A contract in which, under the terms of a contract, one or both the
29 executed contract. . executory contract. unilateral contract. none of the above
parties have still to perform their obligations in future is known as
partly executed or partly
30 executed contracts. executory contracts. all of the above.
Contracts classified on the basis of performance are executory contracts.
words either spoken or
31 documents. both words and documents. all of the above.
Express contract means a contract made by written.
He cannot be sued for He is liable to return the
32 He can be sued for fraud None of the above
A minor by representing his age borrows some money fraud money
33 Flaw in capacity to contract may arise from want of consideration unsoundness of mind illegality of object uncertainity of object
When a person positively asserts that a fact is true when his
34 information does not warrant it to be so, through he believes it to misrepresentation fraud undue influence Coercion
be true, there is
It there is fradulent misrepresentation as to the character of a
35 Void voidable valid contract. illegal
document the contract is
An unlawful detention of any property to obtain his consent to a
36 misrepresentation fraud undue influence Coercion
contrat amounts to
A is not entitled to be
A is entitled to be
37 A supplies the wife and children of B, a lunatic with necessaries reimbursed from B's
reimbursed from B's Both A and B None of these
suitable to their condition in life : property property
A, a tradesman, leaves goods at B's house by mistake. B treats the Not Bound to pay for
38 Bound to pay A for them Both A and B None of these
goods at his own. B is them
A sell and delivers goods to B. A afterwards, without
39 The agreement is Void The contract is Void The contract is Voidable The agreement if valid
consideration agrees to pay for them in default of B
 A enters into a Contract with B to sell him 100 bales of cotton
Either B or C, or both for
40 and afterwards discovers that B was acting as agent for C. A may B for the piece of cotton C for the piece of cotton None of these
the piece of cotton
sue :
A is entitled to be A is not entitled to be
41 A supplies the wife and children of B, a lunatic with necessaries reimbursed from B's reimbursed from B's Both A and B None of these
suitable to their condition in life : property property
A agrees to buy from a certain horse. It turns out that the horse
42 was dead at the time of bargain. Though neither party way aware Void Voidable Valid None of these
of the fact. The agreement is
A, by Misrepresentation, leads B erroneously to believe that five
hundred mauds of indigo are made annually at A's factory. B Not Voidable on
Voidable on account of A's
43 examines the accounts of the factory. Which show that only four account of A's Valid Void
misrepresentation
hundred mauds of indigo have been made. After this B buys the misrepresentation
factory, the contract is.
A is entitled to succeed to an estate at the death of B. B dies C
having received intelligence of B's death, prevents the intelligence Voidable at the option of Voidable at the option of
44 Not Voidable None of the above
reaching A and thus induces A to sell him his interest in the A B
estate, the sale is.
A and B being traders, enter upon a contract. A has private
45 information of a change in prices which would affect B's Bound to inform B Not Bound to inform B Both A and B None of the above
willingness to proceed with the contract. A is .
A intending to deceive B, falsely represents that five hundred
46 mauds of indigo are made annual at A's factory and thereby Legal Voidable at option of B Void Voidable at option of A
inducess B to buy the factory. The contract is.
A agrees to sell a specific cargo of goods supposed to be on its
way from England to Bombay it turns out that before the day of
47 the bargain the ship conveying the cargo had been cast away and Void Voidable Legal None of the above
the goods lost neither party has aware of these facts, the
agreement is.
Cannot be enforced either Cannot be enforced by Cannot be enforced by B
48 A promises to paint a picture for B by a certain day at a certain by A's representatives or A's representatives but but can be by A's None of these
price. A dies before the day. The contract : by B can be by B representatives
A, B and C jointly promise to pay D the sum of Rs. 3,000. C is To receive Rs. 500 from To receive Rs. 500 from
To receive Rs. 1,500 from
49 compelled to pay the whole. A is insolvent but his assets are A's estate and Rs. 1,250 A's estate and Rs. 1,000 To receive Rs. 1,000 from B
B
sufficient to pay one half of his debts. C is entitled from B from B
A promise to deliver goods at B's warehouse on first January, on
A has not preformed his A has performed his
50 that day A brings the goods to B's warehouse, but after the hour Both A and B None of these
promise promise
closing it, and they are not received
Advertisement of an auction is not ……….. but it only invitation
51 Acceptance Consideration Proposal Agreement
for the proposal
such agreement is like specific incident occurred in specific
manner at that time one party give a promise has to pays some
amount or a special object that he and such incident occurs in agreement which is agreement in restraint of
52 wagering agreement legal agreement
opposite manner at that time opposite party has to promise to pay un certain trade
some amount or any object to the first party such agreement is
called ………..
lt is not a consideration which is not happened with the wishes of
53 Promise Third person Major Promisor
………..
If all ……….. are made with the consent of the parties than it
54 Matters Definitions Consideration Gifts
becomes a contract
When the contract possess two part one legal and second illegal,
55 and it is possible to separate legal parts at that time the court can Quasi Legally Illegal contract Ambiguous
implement the part of
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
 103- LEGAL ASPECTS OF BUSINESS

1)Law of contract is—

a)not the whole of agreements nor is it the whole law of obligations b)the whole law of agreements c)the whole
law of obligations d)none of the above.

2)A contract creates

a)rights in personam , b)rights in rem, c)only rights and no obligations , d)only obligations and no rights.

3)An agreement is a voidable contract when it is –

a) enforceable if certain conditions are fulfilled. B)enforceable bylaw at the option of the aggrieved party . c)
enforceable by both parties d)not enforceable at all.

4)An agreement not enforceable by law is said to be

a)void , b)voidable, c)valid, d)unenforceable, d0 illegal.

5)A contract

a) may be void as originally entered into b)may become void subsequent to its formation c)cannot become void
under any circumstances d) may become void at the will of party.

6)The transactions collateral to an illegal agreement are

a)not affected in any manner , b)also tainted with illegality c)voidable at the option of the plaintiff d)void

7)A contract is

a) a legal obligation b) an agreement plus a legal obligation c) consensus ad idem, d) agreement plus a legal
object.

8)Flaw in capacity to contract may arise from –

a)lack of free consent b lack of consideration c) minority d)absence of legal formalities.

9) Which of following result in an offer-

a)A declaration of intention b)an invitation to offer, c)an advertisement offering reward to anyone who finds lost
dog of the advertise, d)an offer made in a joke.

10)A specific offer can be accepted by

a)any person b)any friend of offerer c) the person to whom it is made d)any friend of offeree.

11)A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is

a) a contract voidable at the option of acceptor b)a contract voidable at the option of offerer, c)no contract at all, d)a
valid

12)Acceptance may be revoked by the acceptor

 a)t any time b)before the letter of acceptance reaches the offerer c)after the letter of acceptance reaches the
offeree d)before the death of the acceptor.

13)An advertisement to sell a thing by auction is

a)an offer b)an invitation to offer c)no offer at all d)a contract e) an obligation.

14)On the face of the ticket for a journey the words ―for conditions see back‖ are printed in small print .The
passenger –

a)is bound by the conditions whether he takes care to read them or not . b) is not bound by the conditions c)may
not take note of the conditions d)none of the above.

15)An offer is made to Mani in crowd It –

a) can be accepted by him alone, b)may be accepted by any person who hears it. C)may be accepted by his brother
d)may be accepted by his friends.

16)An acceptance is not according to the mode prescribed but the offerer decides to keep quiet. In such a case there
is –

a) a contract, b) no contract, c)a voidable contract, d) an unenforceable contract.

17)There is a counter-offer when-

a)the offeree gives conditions for acceptance or introduces a fresh term in acceptance b)the offerer makes a
fresh offer c)the offeree makes some query . d )the offeree accepts it.

18)A makes an offer to B on 10th by a letter which reaches B on 12 th B posts letter of acceptance on 14 th which
reaches A on 16th . The communication of acceptance is complete as against A on –

a) 12th b) 14th c)16th

19)Consideration must move at the desire of –

a)the promisor, b) the promisee , c) promisor or any other third party , d)both the promisor and the promisee . e)any
third party

20)Consideration –

a)must move from the promisee , b)may move from the promisee or any other person c)may move from the third
party d) may move from the promisor.

21)Consideration-

a)must be adequate to the promise made, b)need not be adequate to the promise made c)must be of reasonable
value d) must be of more value than the value of promise made.

22)Consideration must be something which the promisor –

a) is already bound to do ,b)is not already bound to do. c)may voluntarily do d)must not do.

23) Compromise of dispute claims –

a)is a good consideration for a contract b)is not a good consideration for a contract c) results in a void agreement
d)is not permitted by law.

24)A promise to compensate ,wholly or in part , a person who has already voluntarily done something for the
promisor is

a)enforceable b)not enforceable because it is without consideration, c) void d) voidable.

25)A person who is not party t a contract-

a)cannot sue, b)can sue , c) can sue only in well recognized cases d)none of these.

26)Consideration in a contract –

a) may be past ,present or future, b)may be present or future only . c)must be present only. D)must be future only.

27)An agreement made without consideration is

a)valid, b)illegal ,c)voidable d)void

28)A promise to subscribe to a charity .The promise is a

a) valid contract , b)voidable contract , c)void agreement d) void contract.

29) An agreement with or by minor is –

a)void b)voidable at the option of the minor c) voidable at the option of the other party d) valid.

30)On attaining the age of majority a minor‘s agreement –

a) can be ratified by him b)cannot be ratified by him c)becomes void d)becomes valid.

31) A minor , by misrepresenting his age , borrows some money –

a) he can be sued for the fraud, b)he cannot be sued for the fraud c)he is liable to return the money d) None of the
above.

32)A minor enters into a contract for the purchase of certain necessaries , in such case –

a) he is not personally liable to pay b)he is liable to pay c)his estate is liable to pay d) his guardian is liable to pay.

33)A person is usually of sound mind , but occasionally of sound mind –

a) he may enter in to a contract when he is of sound mind , b) he may not make a contract even when he is of
sound mind c)he cannot enter into a contract at all. d)None of the above.

34)A contract by an idot is –

a) voidable b) enforceable c)invalid d)void ab inito

35)Contracts made before war with an alien enemy which are against public policy are –

a) suspended and are revived after the war is over. b) dissolved c)not affected at all d)void ab initio

36)The contractual capacity of a company is regulated by –

a)its memorandum of association and the provisions of the companies act, 1956 b)the terms of contract entered
into with a third party c)its articles of association d) its prospectus.

37) The case of Mohiri Bibi v. Dharmodas Ghose (1903) deals with-

a)communication of offer b)communication of acceptance c)a minors agreements d) fraud e)a lunatic‘s agreement.

38)Flaw in a capacity to contract may arise from –

a) want of consideration b)unsoundness of mind c)illegality of object d) uncertainty of object.

39) Where consent is caused by fraud or misrepresentation , the contract is –

a) voidable at the option of the aggrieved party b) void c) unenforceable d) not affected in any manner .

40)Where both the parties to an agreement are under a mistake as a matter of fact essential to the agreement ,the
agreement I –

a) void b) voidable c )illegal d) not affected at all.

41)Merely because a contract was caused by one of the parties to it being under a mistake as to a matter of fact , it is
not-a) voidable b) void c)affected at all d) none of the above.

42)Consent given to a contract under some misrepresentation by the other party makes the contract –

a) void b) invalid c) unenforceable d) voidable

43)When a person positively asserts that a fact is true when his information does not warrant it to be so, though he
believes it to be true , there is –

a) misrepresentation b) fraud c) undue influence d) coercion.

44)Fraud exists when it is shown that a false representation has been made-

a) knowingly b)unknowingly c)unintentionally d)recklessly , not caring whether it is true or false

45) A mere attempt at deceipt by a party to a contract –

a) is not fraud unless the other party is actually deceived b) is fraud whether the other party has been deceived or
not c) amounts to misrepresentation d ) none of the above.

46)When consent to an agreement is obtained by undue influence, the agreement is a –

a)contract voidable at the option of the party whose consent was so obtained b) void contract. C) valid contract
d)void agreement.

47)which of the following relationships raise presumption of undue influence?

a) landlord and tenant b)parent and child c)doctor and patient d) Husband and wife e) Fiancé and fiancée f)
creditor and debtor.

48) If there is error in cause ,the contract I

a) void b) voidable c) valid d)illegal

49)I there is error in consensus , the agreement is

a) void b)voidable c)avoid d)illegal e )not affected at all.

50)If there is a unilateral mistake as regards identity of a party caused by fraud of he other party , the contract is –

a) void ,b) voidable ,c)valid d)illegal

51)If there is a fraudulent misrepresentation as to the contents of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

52) If there is a fraudulent misrepresentation as to the character of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

53)The Case of Cundy v. Lindsay (1878)deals with –

a)Coercion b)undue influence c)mistake as to the nature of transaction d) mistake as regards identity

54)A promise made without the intention of performing it amounts to –

a)innocent misrepresentation b) fraud c)negligent Misrepresentation d) wrongful misrepresentation

55) The3 unlawful detention of any property of a person to obtain his consent to a contract amounts to –

a) misrepresentation b) fraud c) undue influence d) coercion.

56) The collateral transactions to an illegal agreement are-

a)Void, b) illegal, c)voidable ,d)not affected at all

57)An agreement made with an alien enemy is

a)unlawful on the ground of public policy b)unlawful because it becomes difficult to be performed c) valid,
d)voidable.

58)A person enters into an agreement whereby he is bound to do something which is against his public or
professional duty. The agreement is –

a) void on the ground of public policy b) valid , c)voidable d) illegal

59) Regulation as to the opening and closing of business in a market are

a)not unlawful even if they are in restraint of trade . b)unlawful because they are in restraint of trade . c) void d)
not valid

60)An employee , by the terms of his service agreement , is prevented from accepting a similar engagement after the
termination of his service .The restraint –

a) valid b)void c) illegal d)unenforceable

61)The case of nordenfelt v. maxim nordenfelt gun co. (1904)deals with

a ) agreement in restraint of legal proceedings, b)minor‘s agreements c)agreement in restraint of trade
d)agreement in restraint of marriage.

62) A contract of life insurance is-

a) a contract of indemnity b)not a contract of indemnity c)a wagering agreement d)a contingent agreement.

63)an agreement the meaning of which is not certain ,is-

a) void b) voidable c)valid d) illegal

64)Which of the following are wagering agreements,-

a) a crossword competition the prizes of which depend upon correspondence of the competitors solution with
a previously prepared solution, b)picture puzzles ,c) share market transactions in which delivery of stocks and
shares is intended to be given and taken d) a contract of insurance, e) an agreement to buy a ticket for a lottery. f)
commercial transactions , if the intention is not to deliver the goods but only to pay the difference in price g) a
crossword competition involving a good measure of skill for its successful solution.

65) An agreement to do an impossible act is,

a) void b) voidable c) illegal d) enforceable under certain circumstances.

66)A wagering agreement is .

a) forbidden by law, b) immoral, c) opposed to public policy d) none of the above.

67) A contract of insurance is a –

a) contract of guarantee b ) contingent contract c) wagering agreement d)unilateral agreement.

68)Which of the following are contingent contracts?

a)contract of insurance b)contract of guarantee , c)contracts for the sale of goods on credit d0 Wagering
agreements

69)A contingent contract is –

a) void b) voidable c)valid d) illegal

70)A contract to pay B Rs. 10,000 if B s house is burnt – This is a

a) wagering agreement b)void c)voidable agreement d)contingent contract e) contract of guarantee .

71)A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a year .A ‗s promise can be
enforced when the ship

a)arrives Mumbai a damaged condition during the years b)is lost during the year c)is sunk during the years
d)arrives Mumbai in a good condition during the year.

72) Promises forming consideration for each other are known as,

a)independent promises b)dependent promises c)reciprocal promises. d)mutual promises

73)Each party is a promisor and a Promisee in case of –

a)past consideration b)present consideration c)every contract d) reciprocal promises

74)When promisee refuses to accept performance from the promisor who offers to perform ,it is –

a)attempted performance , b) vicarious performance , c)tender d) frustration of contract.

75)Sale of goods for cash is an example of –

a)mutual and independent promises b) mutual and dependent promises c) mutual and concurrent promises
d)conditional and dependent promises,.

76)When a party to a contract transfers his contractual rights to another , it is known as ,-

a)rescission of contract b) waiver of contract c)discharge of contract, d) assignment of contract.

77)Where the debtor does not expressly intimate or where the circumstances attending on a payment do not indicate
any intention , the creditor –

a)may apply it to any lawful debt due b)May apply it even to a time barred debt.

78)When two or more persons have made a joint promise ,then unless a contrary intention appears from the contract,
all such persons must fulfill the promise –

a) jointly b) severally c)jointly and severally d)jointly or severally

79) Assignment by operation of law takes place –

a)by the mutual consent of parties b)by the will of either party c)when the subject matter of a contract ceases to exist
. d)by the death of a party to a contract.

80)A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal representation of A are –

a)Liable for Rs. 10000b) liable for Rs. 6000 c)not liable at all d) liable for Rs. 3000.

81) Owing to a strike in the factory of A , he is not able to supply the goods to B as per the terms of the agreement >
The agreement in such a case

a) is discharged b) is not discharged c) becomes void d) is voidable at the option of A.

82) If a contract contains an undertaking to perform an impossibility , the contract is –

a) void ab initio b)void c)voidable at the option of the plaintiff d) illegal

83)An agreement to do an act impossible in itself –

a) is void, b) is voidable c)is void ab initio d)becomes void when impossibility is discovered

84)If a new contract is substituted in place of an existing contract , it is called –

a)alteration b)rescission c) novation d)waiver ,e)remission

85)The case of Taylor v. caldwell (1883)deals with-

a)discharge of contract by destruction of subject matter , b) anticipatory breach of contract c) discharge of
contract by death of a party d)breach of contract.

86)A lends Rs. 500 to B . He later tells B that he need not repay the amount , the contract is discharged by –

a)breach b ) waiver c) novation d)performance

87)A contract has become more difficult of performance due to some un-contemplated events or delays .The
contract –

a)is discharged b) is not discharged c)becomes void d) becomes voidable.

88) Where a contract could not be performed because of the default by a third person on whose work the promisor
relied , it –

a) is not discharged b) is discharged c)becomes void d)becomes voidable.

89)A creditor agrees with his debtor and a third party to accept that third party as his debtor . The contract is
discharged by, -

a) performance b)alteration c)waiver d)remission e) remission

90) The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954)deals with-

a) agreement opposed to public policy b) Supervening impossibility c) contract of guarantee d) agency

91)A undertakes to paint a picture of B .He dies before he paints the picture . The contract –

a) is discharged by death b)becomes voidable c)becomes voidable at the option of the legal representatives of A .
d)will have to be performed by the legal representatives of A.

92)The court may grant rescission where the contract is-

a) voidable at the option of the plaintiff b)void c)unenforceable d) illegal

93)The foundation of modern law of dameges was laid down in , -

a) Tinn v . Hoffman b) Taylor v. caldwell c)Hadley v. Baxendale d) Addis v. Gramophone

94)Specific performance may be ordered by the court when –

a) the contract is voidable b) damages are an adequate remedy c)damages are not an adequate remedy d)the
contract is uncertain.

95)The measure of damages in case of breach of a contract is the difference between the –

a)contract price and the market price at the date of breach b) contract price and the maximum market price
during the term of the contract c) contract price and the price at which the plaintiff might have sold the goods ,d)
contract price and the price fixed by court.

96)The case of Hadley v. Baxendale (1854) deals with

a) anticipatory breach of contract. b) quantum of damages c)supervening impossibility d)quasi contract.

97)Anticipatory breach of a contract takes place –

a)during the performance of the contract b)at the time when the performance is due. c) before the performance is
due d) at the time when the contract is entered into.

98) In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the customer ,the court
may award----

a) ordinary damages ,b) nominal damages c)exemplary damages d) contemptuous damages.

99) Ordinary damages are damages which---

a) arise in the usual course of things from the breach b)which are in the contemplation of the parties at the time
when the contract is made c) are agreed in advance d) are given by way of punishment for breach of contract.

100)A agreed to sell 100 shares to B at Rs. 75 per share delivery to be given on the 1 st march , B refused to accept
delivery on 1st march as price had gone down to Rs. 60 per share .Subsequently A sold these shares at Rs.92 per
share –

a)A cannot recover any damages from B b)A will have to restore to BRs. 1700 i.e. the profit he made c) A caan
recover dameges to be determined by the President of the stock exchange.

101)Exemplary damages are –

a) allowed in case of dishounor of a cheque by a banker having sufficient funds b) the difference between the
contract price and the market price c)allowed where in case of breach of a contract , the plaintiff has not suffered
any loss. D) none of these.

102) A quasi contract –

a) is a contract b) as an agreement c)creates only legal obligation d)is none of these

103)when an agreement is discovered to be void ,any person who has received any advantage under such agreement

a) is bound to restore it b) is not bound to restore it c)is not bound to return it .d) may retain it e) none of these

104)A minor has been supplied necessaries on credit-

a) he is not liable b) he is personally liable c) his estate is liable d) he is not personally liable

105) A person who finds good belonging to another and takes them into his custody ,is subject to the same
responsibility as a-

a) bailee b) true owner c) bailor d) pledge.

106) A finder of lost goods is a –

a) bailor b) Baile c) true owner d) thief

107)Quantum meruit means –

a)a non gratuitous promise b)an implied promise c)as mush as earned d)as much as is paid.

108) A contract of indemnity is a –

a) a contingent contract b) wagering contract c)quasi contract d) void contract

109)The definition of a contract of indemnity as given in the Indian contract act ,1872 includes

a)express promises to indemnity b)implied promises to indemnity c) cases where loss arises from accidents and
events not depending on the conduct of the promisor or any other person d)cases where the loss is caused by the
conduct of the promisor himself or by the conduct of any person

110) S and P go into a shop ,S says to the shopkeeper ,C let P have the goods and if he does not pay you , I will
―This is a –

a)contract of guarantee b)contract of indemnity c)wagering agreement d) quasi contract

111) Any variance made without surety‘s consent in the terms of the contract between the principal debtor and the
creditor discharges the surety –

a) as to transactions prior to variance b) as to transactions subsequent to variance c) as to all transactions d) from

his liability under the guarantee.

112)A guarantee obtained by a creditor by keeping silence as to material circumstances is –

a) valid b)voidable c)unenforceable d) invalid

113)Where there are co-sureties ,a release by the creditor of one of them –

a) discharges the other co-sureties b) does not discharge the other co-sureties c)makes all the co-sureties
immediately liable d) makes the contract of guarantee void.

114) The right of subrogation in a contract of guarantee is available to the

a) creditor b) principal debtor c) surety d)indemnified

115) The omission of the creditor to sue within the period of limitation –

a) discharges the surety b) does not discharge the surety c) makes the contract of guarantee void d)makes the
contract of guarantee illegal.

116) In a sale, the property in goods –

a) is transferred to the buyer , b) is yet to be transferred to the buyer c) may be transferred at a future time d) is
transferred when goods are delivered to the buyer e)is transferred when the buyer pays the price

117)In a sale ,if the goods are destroyed , the loss falls on –

a) the buyer b) the seller c) partly on buyer and partly on seller d)the seller if price has not been paid e) by the
buyer.

118)The term property as used in the sale of goods act 1930 means

a) possession b ) ownership c) ownership and possession both d) the subject matter of contract of sale.

119) If a price is not determined by the parties in a contract of sale , the buyer is bound to pay –
a)the price demanded by the seller ,b) a reasonable price c) the price which the buyer thinks is reasonable d) the
price to be determined by a third independent person.

120)The doctrine of caveat emptor applies –

a) incase of implied conditions and warranties b) when the buyer does not intimate the purpose to the seller and
depends upon his own skill and judgment c) when goods are sold by sample d) when goods are sold by description

121)If a sale is by sample as well as by description , the implied condition is that the goods shall correspond with –

a) sample b) description c) both sample and description d) either sample or description .

122)In a sale , there is an implied condition on the part of the seller that he –

a) has a right to sell the goods b) is in possession of the goods c) will have the right to sell d) will acquire the goods

123)A condition is a stipulation which is a –

a) essential to the main purpose of contract of sale b) not essential to the main purpose of contract of sale ,c)
collateral to the main purpose of contract of sale d) none of the above.

124)In case of breach of a warranty , the buyer can –

a) repudiate the contract b) claim damages only c) return the goods d) refuse to pay the price e) refuse to take
delivery of the goods .

125)In case of breach of a warranty , the buyer can –

a) claim damages only b) repudiate the contract c)cannot return the goods d) refuse to take delivery of the goods
 MULTIPLE CHOICE QUESTIONS
(103)- (LEGAL ASPECT OF BUSINESS) CLASS M.B.A I YEAR
.

1. Indian Contract Act extends to the whole of India excepts to the state of?
a. Assam
b. Jammu & Kashmir
c. West Bengal
d. None of these
Ans: B
2. An agreement enforceable by law is called?
a. Void
b. Promise
c. Contract
d. All of these
Ans: C
3. Chapter I of the Indian Contract Act deals the ______ of proposals?
a. Communication
b. Revocation
c. Acceptance
d. All of these
Ans : D
4. In order to convert a proposal into a promise the acceptance must...?
a. Absolute
b. Unqualified
c. Absolute & Unqualified
d. None of these
Ans: C
5. Agreement means ________________.
a. Offer + acceptance
b. Offer + contract
c. Contract + acceptance
d. Enforceable by law
Ans:A
6. The two contracting parties must agree as regards the subject-matter of the
contract at the same time & in the same sense is called as __________.
a. personam
b. consensus-ad-idem
c. reciprocal promise
d. accepted proposal
Ans: B
7. Technical term of void contract is _________.
a. voidable contract
b. void-ab-initio
c. personam
d. void agreement
Ans: B
8. Communication of a proposal is complete when it comes to the knowledge of the person to
whom it s made.
a. True
b. Partly True
c. False
d. None of these
Ans: A
9. Incase of breach of contract of sale of some rarea article or thing for which there is no
substitue available in the market the court may grant-
a.Quantum Meruit
b.Rescission
c.Specific Performance
d. Injunction
Ans: C
10. _______ is one the object of which is unlawful.
a. Void contract
b. Wager
c. An illegal agreement
d. Voidable contract
Ans: C
11. A proposal, when accepted becomes a ________.
a. promise
b. contract
c. offer
d. consensus
Ans: A
12. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
13. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
a. wagering contract
b. bilateral contract
c. illegal contract
d. unenforceable contract
Ans: B
14. Promises which form the consideration or part of the consideration for each other is
called as __________.
a. reciprocal promise
b. reciprocal offer
c. reciprocal performance
d. consideration
Ans:A
15. If any parties to the contract refuses or fails to perform his part of the contract or by
his act makes it impossible to perform his obligation under the contract, it is called
as _________.
a. breach of contract
b. void contract
c. tender
d. novation
Ans:A
16. A Quasi- contract under Indian Contract Act
a. Is an agreement
b. Is a contract
c. Has on a legal obligation
d. None of these
Ans: C
17. A contingent contract dependent on the non happening of specified uncertain event within
fixed time can be enforced if the event __
a. Does not happen within a fixed time
b. Becomes impossible before the expiry of the fixed time
c. Happens within a fixed time
d. Both (a) & (b)
Ans: D
18. An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Ans:A
19. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B
20. Substitution of a new contract for the original contract is called as ______.
a. novation
b. rescission
c. alteration
d. remission
Ans:A
21. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
22. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B

23. The court order to restrain a person not to do a particular activity is called as
 ________.
a. quantum meruit
b. specific performance
c. injuction
d. novation
Ans:C
24. Coercion involves the usage of _________.
a. fraud
b. misrepresentation
c. undue influence
d. all the above
Ans:D
25. A contract which arises on the basis of coercion is called as _________.
a. void contract
b. voidable contract
c. illegal contract
a. lawful contract
Ans:A
26. A contingent contract is ____________ contract.
a. Void
b. Voidable
c. Valid
d. Illegal
Ans:C
27. Damages which may reasonably be supposed to have been in the contemplation of
both parties as he probable result of the breach of a contract is known as ________.
a. ordinary damages
b. special damages
c. vindictive damages
d. nominal damages
Ans:B
28. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
29.Vindictive Damages have been awarded-
a. for a breach of promise to marry
b. for a wrongful dishonour of a cheque by banker processing adequate funds of the customer
c. Either (1) OR (2)
d. Both (1) and (2)
30. An Executary Consideration is-
a. Consideration promised by an executive of a company
b. consideration which consists simply of a mutual exchange of promise each being the
consideration for the other.
c. consideration which should be executed on a future date
d. consideration which should be executed before the court
Ans: C
31. When a person signifies to another his willingness to do or to abstain from doing anything
with a view to obtaining the assent of that other to such act or abstinence-
he is said to-
a. enter into a contract
b. make a proposal
c.accept an offer
d. create legal obligation
Ans: B
32. An agreeement to agree in future is
a. valid
b. voidable
c. invalid.
d. illegal
Ans: C
33. An agreement entered into with free consent and lawful but inadequate consideration is--
a. valid
b. voidable
c. invalid.
d. illegal
Ans: A
34. A minor's estate is liable for the ______ supplied to him
a. Luxuries
b. Necessities
c. Necessaries
d. All of these
Ans: C
35.The aggrieved party in breach of contract has not suffered any loss by reason of the
breach of contract, the damages recoverable by him is ________.
a. payment of interest
b. ordinary damages
c. special damages
d. nominal damages
Ans:D
36. If time is the essence of a contract and the promisor fails to perform the contract by the
specified time, the contract:
a. remains valid
b. becomes void
c. becomes unorceable
d. becomes voidable at the instance of the promise
Ans: D
37. __________ damages are measured on the basis of extent of shock to the sentiments of the
promisee
a. Vindictive
b. Nominal
c. Loss of reputation
d. Discomfort
Ans: A

38. There are _________ ways for actual breach of contract.

a. 1
b. 2
c. 3
d. 4
Answer:B
 39. The technical term “Quantum Meruit” denotes ____________.
a. performance of a contract
b. quantity involved in contract
c. suit for specific performance
d. as much as earned
Answer:D
40. Law of quasi-contract is also known as ________.
a. Law of returns
b. Law of restitution
c. Law of repudiation
d. Law of contract
Ans: B
41. The contract of General Insurance is--
a. Contingent
b. Voidable
c. Valid
d. None of these
Ans: A
42. ___________ means intentional relinquishment of a right under the contract
a. waiver
b. wager
c. alteration
d. rescission
Ans:A
43. Termination of contractual relations between the parties to a contract is called as
________ .
a. performance of contract
b. discharge of contract
c. winding up of contract
d. none of the above
Ans:B
44. ____________ means passing over rights and liabilities from one person to another
person.
a. Devolution
b. Endorsement
c. Passing the buck
d. Escapism
Ans:A
45.An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Answer:A
46. Responsibility of finder of goods under contract is __________.
a. indemnifier
b. bailee
c. owner
d. despatcher
Ans:B
47. A person who finds goods belonging to another and takes them into his custody, is
subject to the same responsibility as a ________________.
a. bailee.
b. true owner .
c. thief.
d. agent.
Ans:A
48. A finder of lost goods is a _____________.
a. bailer.
b. bailee.
c. true owner.
d. thief.
Ans:B
49. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A
50. The position of finder of lost goods is that of a ___________.
a.Bailer .
b.Bailee.
c.Surety.
d.Principal debtor.
Ans: B
51. A gratuitous bailee is liable for defects in the goods bailed __________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases.
d. in particular case.
Ans:B
52.A gratuitous bailment is one which is _____________.
a. supported by consideration
b. not Supported by consideration
c. not enforced by law
d. void
Ans:B
53. According to Sale of Goods Act, 1930, “Seller” means a person
a. Who only agrees to sell the goods
b. Who only sells the goods
c. Who sells or agrees to sell the goods
d. None of these
Ans: C
54. A bailee has___________.

a. a right of particular lien over the good bailed.

b. a right of general lien.

c. a right of both particular and general lien.

d. no lien at all over the goods bailed.

Ans:A
 55. In sale, if the goods are destroyed, the loss falls on _____________.

a. the buyer.

b. the seller.

c. partly on the buyer and partly on the seller.

d. third party.

Ans:A

56. If sale is by sample as well as by description, the implied condition is that the goods

shall correspond with ____________.

a. sample.

b. description.

c. both sample and description.

d. either sample or description.

Ans:C

57. In a sale, there is an implied condition on the part of seller that he __________.

a. has right to sell the goods.

b. is in position of the goods.

c. will have the right sell.

d. will not have the right to resell.

Ans:A

58. A condition is a stipulation which is____________.

a. essential to the main purpose of contract of sale.

b. not essential to the main purpose of the contract of sale.

c. collateral to the main purpose of contract of sale.

d. additional security.

Ans:A

59. ' Contract of Sale' under Sale of Goods Act, 1930, comprises of contracts which are,
a. Executory
b. Concluded
c. Both executory and executed
d None of these
Ans: C
60. In a contract of sale of goods the implied condition of wholesomeness applies to---
a. Medicines
b. Eatables
c. Cloth
d. Computers
Ans: B

61. The consideration in a contract of Sale is called--

a. Price
b. Exchange Money
c. Barter Money
d. Rewards
Ans:A
62. When a breach of condition is treated as a breach of warranty, the buyer cac--
a. Repudiate the contract
b. Reject the goods
c. Claim damages
d. None of these
Ams: C
63. The main objective of a contract of sale is ______________.

a. transfer of possessing of goods.

b.transfer of property in goods from seller to buyer.

c. delivery of goods.

d. payment of price.

Ans:B

64. When there is a contract for the sale of unascertained goods, the property in

goods___________.

a. passes when the buyer pays the price.

b. does not pass until the goods are ascertained.

c. when the contract is entered into.

d. when the buyer accepts the goods.

Ans:B

65. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
a. accept the whole.

b. reject the whole.

c. accept the goods ordered for and can return the excess quantity.

d. either a or c

Ans:D

66. The lien of an unpaid seller depends on _____________.

a. possession.

b. title.

c. ownership.

d. possession and ownership.

Ans:A

67. An unpaid seller can excises the right of stoppage in transit when the carrier holds the

goods ____________.

a. as sellers agent.

b. as buyer s agent.

c. as agent of both of them.

d. in his own name.

Ans:D

68. The sale of goods act, 1930 deals with _________.

a. movable goods only.

b. immovable goods only.

c. both movable and immovable goods.

d. all goods except ornaments.

Ans:A

69. The term, ‘goods’ for the purpose of sale of goods act does not include _________.

a. money.
b. actionable claims.

c. immovable property.

d. all the above.

Ans:B

70.A contract for the sale of ‘furniture goods’ is_____________.

a. sale.

b. agreement to sell.

c. void.

d. voidable.

Ans:B

71. ___________ gives the buyer only a right to claim damages.

a. Condition.

b. Guarantee.

c. Warranty.

d. Indemnity.

Ans:C

72. Which of the following is not an implied condition in a contract of sale _________.

a. condition as to title.

b. condition as to description.

c. condition as to freedom from the encumbrance.

d. condition as to a sample.

Ans:C

73. A contract of sale may be __________.

a. absolute only.

b. condition only.

c. absolute and conditional.

d. indemnity.

Ans:C

74. S and P gets into a shop. S says to the shopkeeper C “let P have the goods, and if he

does not pay you, I will”. “This is a __________.

a.contract of guarantee.

b.contract of indemnity.

c.wagering contract.

d.quasi-contract.

Ans:A

75. A bailment is usually created by agreement between ______________.

a. the principal & the agent.

b. the contracted parties.

c. the bailer & the bailee.

d. the guaranteed & parties.

Ans: C.

76. The gratuitous bailer is liable to bailee for the defects in the goods bailed

___________.

a. even if he is not aware of them.

b. only if he is aware of them.

c. in all cases of loss.

d. in certain case of loss.

Ans:B

77.The term 'property' as used in the Sale of Goods Act, 1930 means_____________

a. possession.

b. ownership.

c. both ownership and possession.

d. the subject matter of contract of sale.

Ans:B

78.The term “contract to sale” is a generic term which includes both __________ .

a. sale & an agreement to sell.

b. contract & agreement.

c. possession & Ownership of goods.

d. transfer to ownership & possession.

Ans: A

79. _________ form the subject of a contract of sale.

a. Assets.

b. Consideration

c. Goods.

d. Agreement to sell.

Ans: C

80. There is a constructive delivery of goods_____________.

a. When the seller hands over to the buyer the key of the warehouse where the goods are

lying.

b. When a third person in possession of the goods acknowledged to the buyer that he

holds them on his behalf.

c. When the seller physically delivers the goods to the buyers.

d. When the seller asks the buyer to take delivery of the goods.

Ans:B
81.Where there is no specific agreement as to place, the goods sold are to be delivered

at the place______________.

a. at which they are at the time of sale.

b. of the buyer.

c. desired by the buyer.

d. to be determined by the seller.

Ans:A
82. An implied warranty or condition as to quality or fitness for a particular purpose may

be annexed by the usage of ________.

a. trade.

b. goods.

c. commerce.

d. agreement to sell.

Ans: A

83. __________ is an illicit act dissuading the intending purchase r from bidding.

a. Withholding the goods.

b. Damping.

c. Knockout.

d. Repudiation.

Ans: B

84. Where there is an unconditional contract for the sale of specific goods in a

deliverable state, the property in the goods passes to the buyer when ______________.

a. the goods are delivered to the buyer.

b. the price is paid by the buyer.

c. the contract is made.

d. the buyer accepts the good.

Ans:C

85. ___________ is a contract in which the terms are started in words (Written or
Spoken) by the parties.

a. Express contract.

b. Implied contract.

c. Executed contract.

d. Executory contract.

Ans: A

86. The doctrine of caveat emptor applies______________

a.in case of implied conditions and warranties.

b.when the buyer does not intimate the purpose to the seller and depends upon his own

skill and judgment.

c.when goods are sold by sample.

d.when goods are sold by description.

Ans:A

87. “A” who purchases certain goods from B by a misrepresentation and pledges them

with “C”. The pledge is _____________.

a. valid.

b. void.

c. voidable.

d. invalid.

Ans:B

88. In a hire – purchase agreement, the hirer ____________.

a. has an option to buy the goods.

b. must but the goods.

c. must return the goods.

d. is not given the possession of the goods.

Ans:A
 89. ____________ means competency of the parties to enter into a valid contract.

a. Solvency.

b. Capacity.

c. Consequences.

d. Position.

Ans: B

90. The measure of damages in case of breach of a contract is the difference between the

___________.

a. contract price and the market price at the date of breach.

b. contract price and the maximum market price during the terms of contract.

c. contract price and the price at which the plaintiff might have sold the goods.

d. contract price and the price fixed by the court.

Ans:A

91. Technical term of contract without consideration is called as ________ .

a. nadum pactum.

b. void – ad-initio.

c. consensus –ad-idem

d. caveat emptor.

Ans: A

92. Mr. A, a tradesman, leaves goods at Mr. B’s house by mistake. Mr. B treats the goods

as his own. He is bound to pay for Mr.A. This is an example for obligation to pay for

________.

a. non-gratuitous act

b. gratuitous act

c. coercion
d. quantum meruit

Ans:A

93. Where the buyer wrongfully refuses to aceept the goods, the seller may recover the damages
a. for the reasonable charges for the care and the custody of goods
b. for the loss caused by the non accepatnce of goods
c. either (a) OR (b)
d. both (a) AND (b)
Ans: D
94. Under the Sale of Goods Act 1930, the existing goods are classified as
a. Specified Goods
b. Ascertained Goods
c. Unascertained Goods
d. All of the above
Ans: D
95. Following is not a document of title
a. railway receipt
b. bill of lading
c. dock of warrant
d. None of these
Ans: D
96. When the terms of the contract of sale of goods are such that by reserving the right of
disposal, the seller commits a breach of contract, and the goods appropriated to the contract does
not cause the property in goods to pass to the buyer. It is--
a. Partly True
b. True
c. False
d. None of these
Ans: B
97. When the seller exercises right of lien or right of stoppage of goods in transit and gives
notice to the buyer for payment and the buyer does not pay or tender within reasonable time , an
unpaid seller can--
a. re-sale the goods
b. cannot re-sale the goods
c. ask again to the buyer
d. take possesion and mark the good as bad
Ans: A

98. Ignorance of law is _____________.

a. an excuse

b. not an excuse

c. punishment

d. offence

Ans:B
 99. ‘A’ permits a coolie to put his luggage to a carriage. The contract comes into

existence as soon as the coolie puts the luggage. So ‘A’ has only to fulfill his part.

This is an example for __________.

a. unilateral contract

b. bilateral contract

c. implied contract

d. executed contract

Ans:A

100. “A person should not be allowed to enrich himself unjustly at the expense of

another” is the principle of ____________.

a. contingent contract

b. wagering contract

c. quasi contract

d. void contract

Ans:C
 LAB

1) Law of contract is—

a) not the whole of agreements nor is it the whole law of obligations
b) the whole law of agreements
c) the whole law of obligations
d) none of the above.

2) An agreement is a voidable contract when it is –

a) enforceable if certain conditions are fulfilled.
B)enforceable bylaw at the option of the aggrieved party .
c)enforceable by both parties

d)not enforceable at all.

3) An agreement not enforceable by law is said to be

a)void ,
b)voidable,
c)valid,
d)unenforceable,
e) illegal.

4) A contract is
a) a legal obligation
b) an agreement plus a legal obligation
c) consensus ad idem,
d) agreement plus a legal object.

5) A specific offer can be accepted by

a)any person
b) any friend of offerer
c) the person to whom it is made
d) any friend of offeree.

6) A letter of acceptance sufficiently stamped and duly addressed is put into course of
transmission. There is
a) a contract voidable at the option of acceptor
b)a contract voidable at the option of offerer,
c)no contract at all,
d) a valid

7) Acceptance may be revoked by the acceptor

a) any time
b) before the letter of acceptance reaches the offerer
c) after the letter of acceptance reaches the offeree
d) before the death of the acceptor.
8) An offer is made to Mani in crowd It –
a) can be accepted by him alone,
b) may be accepted by any person who hears it.
C)may be accepted by his brother
d)may be accepted by his friends.

9) A makes an offer to B on 10th by a letter which reaches B on 12th B posts letter of acceptance
on 14th which reaches A on 16th . The communication of acceptance is complete as against A on
–
a) 12th
b) 14th
c)16th

10) Consideration
a)must be adequate to the promise made,
b) need not be adequate to the promise made
c) must be of reasonable value
d) must be of more value than the value of promise made.

11) A promise to compensate ,wholly or in part , a person who has already voluntarily done
something for the promisor is
a) enforceable
b) not enforceable because it is without consideration,
c) void
d) voidable.

12) Consideration in a contract –

a) may be past ,present or future,
b) may be present or future only .
c) must be present only.
D)must be future only.

13) An agreement made without consideration is

a)valid,
b)illegal ,
c)voidable
d)void

14) An agreement with or by minor is –

a)void
b) voidable at the option of the minor
c) voidable at the option of the other party
d) valid.
15) A minor enters into a contract for the purchase of certain necessaries , in such case –
a) he is not personally liable to pay
b) he is liable to pay
c) his estate is liable to pay
d) his guardian is liable to pay.

16) The contractual capacity of a company is regulated by –

a) its memorandum of association and the provisions of the companies act, 1956
b) the terms of contract entered into with a third party
c) its articles of association
d) its prospectus.

17) Flaw in a capacity to contract may arise from –

a) want of consideration
b)unsoundness of mind
c)illegality of object

d) uncertainty of object.

18) Where consent is caused by fraud or misrepresentation , the contract is –

a) voidable at the option of the aggrieved party
b) void
c) unenforceable
d) not affected in any manner .

19) Where both the parties to an agreement are under a mistake as a matter of fact essential to the
agreement ,the agreement Is –
a) void
b) voidable
c)illegal
d) not affected at all.

20) Consent given to a contract under some misrepresentation by the other party makes the
contract –
a) void
b) invalid
c) unenforceable
d) voidable

21) When a person positively asserts that a fact is true when his information does not warrant it to
be so, though he believes it to be true , there is –
a) misrepresentation
b) fraud
c) undue influence
d) coercion.
.
22) When consent to an agreement is obtained by undue influence, the agreement is a –
a)contract voidable at the option of the party whose consent was so obtained
b) void contract.
C) valid contract
d)void agreement.

23) A promise made without the intention of performing it amounts to –

a)innocent misrepresentation
b) fraud
c)negligent Misrepresentation
d) wrongful misrepresentation

24) The unlawful detention of any property of a person to obtain his consent to a contract
amounts to –
a) misrepresentation
b) fraud
c) undue influence
d) coercion.

25) An agreement made with an alien enemy is

a)unlawful on the ground of public policy
b) unlawful because it becomes difficult to be performed
c) valid,
d)voidable.

26) An agreement to do an impossible act is,

a) void
b) voidable
c) illegal
d) enforceable under certain circumstances.

27) A wagering agreement is .

a) forbidden by law,
b) immoral,
c) opposed to public policy
d) none of the above.

28) If a contract contains an undertaking to perform an impossibility , the contract is –

a) void ab initio
b)void
c)voidable at the option of the plaintiff
d) illegal
29) If a new contract is substituted in place of an existing contract , it is called –
a)alteration
b) rescission
c) novation
d) waiver ,
e)remission

30) In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the
customer ,the court may award----
a) ordinary damages ,
b) nominal damages
c)exemplary damages
d) contemptuous damages.

31) A quasi contract –

a) is a contract
b) as an agreement
c)creates only legal obligation
d)is none of these

32) Quantum meruit means –

a)a non gratuitous promise
b) an implied promise
c) as mush as earned
d) as much as is paid.

33) A contract of indemnity is a –

a) a contingent contract
b) wagering contract
c)quasi contract
d) void contract

34) Where there are co-sureties ,a release by the creditor of one of them –
a) discharges the other co-sureties
b) does not discharge the other co-sureties
c) makes all the co-sureties immediately liable
d) makes the contract of guarantee void.

35) The right of subrogation in a contract of guarantee is available to the

a) creditor
b) principal debtor
c) surety
d)indemnified
1. In a sale, the property in goods –
a) is transferred to the buyer ,
b) is yet to be transferred to the buyer
c) may be transferred at a future time
d) is transferred when goods are delivered to the buyer
e)is transferred when the buyer pays the price

2. In a sale ,if the goods are destroyed , the loss falls on –

a) the buyer
b) the seller
c) partly on buyer and partly on seller
d)the seller if price has not been paid by the buyer.

3. The term property as used in the sale of goods act means

a) possession
b ) ownership

c) ownership and possession both

d) the subject matter of contract of sale.

4. If a price is not determined by the parties in a contract of sale , the buyer is bound to pay
a)the price demanded by the seller ,
b) a reasonable price
c) the price which the buyer thinks is reasonable
d) the price to be determined by a third independent person.

5. A condition is a stipulation which is a –

a) essential to the main purpose of contract of sale
b) not essential to the main purpose of contract of sale ,
c) collateral to the main purpose of contract of sale d) none of the above.

6. In case of breach of a warranty , the buyer can –

a) repudiate the contract
b) claim damages only
c) return the goods
d) refuse to pay the price
e) refuse to take delivery of the goods .

7. Which of the following is not a remedy available to buyers?

a. Right to damages
b. Right to reject the goods
c. Right to specific performance
d. Right to demand replacement goods
1. In the case of partnership firm. Audit is
a) Compulsory
b) Optional
c) None of the above.

2. Property of the company belongs to

a) Company
b) Share holders
c) Members
d) Promoters

3. Minimum paid up share capita l in case of a private company is

a) 1 Lakh
b) 2 Lakhs
c) 3 Lakhs
d) 4 Lakhs

4. Age limit of Directors in case of private company is

a) 65
b) 70
c) 75
d) No limit

5. The liability of members if company is limited by guarantee.

a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

6. The liability of members if company is limited by shares

a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

7. A company is named as govt. company if it is holds % of paid up share capital

a) more than 30
b) more than 40
c) more than 50
d) None

8. Central Government permission is required in case of conversion

a) Private to public
b) Public to private
c) Both (a) or (b)
d) None of the above
9. In case of Non –Profit making Companies notice of general meeting should be given with
in days
a) 14
b) 15
c) 21
d) 22

10. If the guarantee Co. having no share capital the liability of shareholders will be
a) To the extent of guarantee
b) Unpaid value of shares
c) Unlimited
d) None of the above

11. Maximum members in case of private company

a) 50
b) 100
c) 75
d) None of these

12. Maximum paid up capital in case of public company.

a) 50 Lakhs
b) 100 Lakhs
c) 125 Lakhs
d) None of these

13. Any change in the address of the registered office must be communicated to the registrar
with in:
a) 15 days
b) 30 days
c) 1 Month
d) 12 months

14. In case of forgeries acts done in the name of the company are
a) Valid
b) Void
c) Void ab initio
d) None of the above

15. Signature of memorandum and articles should be done by number of

persons in case of public company
a) 7
b) 5
c) 4
d) None of these
16. Address of the registered office is situated in
a) MOA
b) AOA
c) Prospectus
d) None of these

17. The date of the opening of the subscription list means the beginning of the from
the day of the issue of prospectus.
a) 5 th
b) 3 rd
c) 10 th
d) 20 th

18. When the shares are transferred to X from Y. Y will be a of the company
a) Member
b) Shareholder
c) Partner
d) None of these

19. A company can become a members of another company if it is so authorized by

a) MOA
b) AOA
c) Both (a) & (b)
d) None of the above

20. A company can create ‘reserve capital’ by passing

a) an ordinary resolution
b) a special resolution
c) a board resolution
d) None of the above

21. Paying back of capital is called

a) Redemption
b) Conversion
c) Participation
d) None

22. For reducing its share capital it should give notice to whom?
a) Debtors
b) Creditors
c) Both a) & b)
d) None of the above

23. With in 30 days of completion of buy back company shall file the details with whom

a) Registrar
b) SEBI
c) Both a) & b)
d) None of the above
24. Forfeiture can be made only if it is authorized by _
a) AOA
b) MOA
c) ROC
d) C.G

25. is voluntary passage of the rights and duties of member from a share holder.
a) Transfer
b) Transmission
c) Both (a) & (b)
d) None of the above

26. What is the time limit for conducting statutory meeting?

a) 1 to 5 months
b) 1 to 6 months
c) 1 to 9 months
d) None of these

27. In which one of the following cases an ordinary resolution may be passed
a) Commencement of a new business
b) alteration of articles
c) Compulsory winding up of the company
d) none of the above

28. In which one or more of the following company a member does not have a right to
appoint
proxy:
a) Public company having share capital
b) Public company not having share capital
c) Private company not having a share capital
d) None of the above

29. Directors are of the company

a) Employees
b) Employers
c) Both a) & b)
d) None of the above

30. is the official recording of the proceedings of a meeting

a) Quorum
b) Minutes
c) Both a) & b)
d) None of the above
1. means right to be assured, wherever possible, access to a variety of goods and
services at competitive prices.
a. Right to be heard
b. Right to choose
c. Right to be informed
d. Right to safety

2. If the value of goods or services and the compensation, if any, claimed exceeds Rs one
crore, then where should a consumer file the complaint?
a. State Commission
b. National Commission
c. District Forum
d. Supreme Court

3. All of the following are the power and functions of commission EXCEPT
a. Power to award compensation
b. Power to review its own orders
c. Inquiring into certain agreements
d. Power to reject the orders

4. CCI stands for

a. Consumer Commission of India
b. Competition Commission of India
c. Competition Collaboration of India
d. Computer Competition of India

5. IPC stands for

a. International Personal Computer
b. Indian Personal Computer
c. International Penal Code
d. Indian Penal Code

6. The Consumer protection act 1986 enacted in

a. 15-Jun-05
b. 24-Oct-86
c. 24-Dec-86
d. 1 Jan 1986

7. Appropriate laboratory means a laboratory or organization

a. Recognized by Central Government
b. Recognized by state government
c. Both the above
d. None of the above
8. Complainant means

a. Consumer
b. Any voluntary consumer association registered under the companies act 1956
c. The central govt or any state govt
d. All the above

9. Complaint means allegation in writing made by a complainant that

a. An unfair trade practice or restrictive trade practice has been adapted by any traders or
service provider
b. The goods bought by him or agreed to be bought by him suffer from one or more defect
c. A traders or the service provider as the case may be has charged for the goods or for the
services mentioned in the complaint a price in excess of the price
d. All the above

10. The following is not a consumer

a. The insurance company

b. A licensee to run a phone
c. A lottery ticket holder
d. All the above

11. The central consumer protection council shall consist of the following members

a. The minister in charge of consumer affairs in the central govt, who shall be its chairman
b. Such member of other official or non official members representing such interest as may be
prescribed
c. The Chief justice of high court
d. Both A&B

12. The central council shall meet as and when necessary but at least meeting of the
council shall be held every year

a. One
b. Two
c. Three
d. Four

13. Members of state consumer protection council should not exceed

a. Two
b. Five
c. Ten
d. Three
14. Chairman of the district consumer protection council is

a. District magistrate
b. Collector of the District
c. MP of the district
d. None of these

15. Which one of the following know as Consumer disputes redressal agency?

a. District forum
b. State commission
c. National commission
d. All the above

16. President of district forum is

a. Collector of the district

b. A person who are qualified as advocate
c. A person who are qualified to be a district judge
d. None of these

17. Mark the correct option relating to district forum

a. It should have two member , one of whom shall be a woman

b. Members age shall not be less than 35 years old
c. Possess a bachelors of degree from recognized university
d. Ten year knowledge and experience in dealing with problems relating to economics, law,
commerce, accountancy, industry& public affairs
e. All the above

18. The disqualification of the member is

a. Has been convicted and sentenced to imprisonment for an offence which , in the opinion of
the state govt involves moral turpitude
b. Is an undercharged insolvent
c. Is of unsound mind
d. All the above

19. Every appointment of district forum shall be made by the state govt on the
recommendation of a selection committee consisting of the following

a. President of the state commission shall be a chairman

b. Secretary, law dept of the state shall be a member
c. Secretary, incharge of dept dealing with consumer affair shall be a another member
d. All the above
20. Who will working as president in case absence of the president of state commission

a. Governor
b. Chief minister
c. A sitting judge of High court
d. Chief justice of highcourt

21. Mark the correct option

a. Every member of district forum shall hold office a term of 5 years or up to age 65 years
b. The member of district forum shall eligible for reappointment for another term
c. Members of district forum may resign his office in writing addressed to state government
d. All the above

22. Any person aggrieved by an order made by the District forum may prefer an appeal such
order to the State commission within

a. 60 days
b. 90 days
c. 1 month
d. Thirty days

23. Any person prefer an appeal to state commission shall be deposited amount in prescribed
manner

a. Fifty percent of that amount

b. Twenty five thousand rupees
c. Whichever is less of the above A&B
d. None of these

24. Information Technology (IT) Act 2000 came into force on .......?
A. 17 October 2000
B. 9 June 2000
C. 1 June 2000
D. 1 October 2000

25. What is/are component of IT Act 2000 ?

A. Legal Recognition to Digital Signatures
B. Regulation of Certification Authorities.
C. Digital Certificates
D. All the above

26. Information Technology (Amendment) Act, 2008 has come into force in ?
A. January 2008
B. October 2009
C. October 2008
D. January 2009
27. Controller of Certifying Authorities (CCA) work under ?
A. Prime Minister office
B. Reserve Bank of India
C. Ministry of Communication & IT
D. autonomous body

28. Which of the following is an example of Intellectual property ?

A. Patent
B. Trade Marks
C. Copyright
D. All of above
Ans: D

29. Intellectual Property Rights (IPR) protect the use of information and ideas that are of

a. Ethical value
b. Moral value
c. Social value
d. Commercial value

30. The term ‘Intellectual Property Rights’ covers

a. Copyrights
b. Know-how
c. Trade dress
d. All of the above

31. The following can not be exploited by assigning or by licensing the rights to others.

a. Patents
b. Designs
c. Trademark
d. All of the above

32. The following can be patented

a. Machine
b. Process
c. Composition of matter
d. All of the above

33. Trade mark

a. is represented graphically
b. is capable of distinguishing the goods or services of one person from those of others
c. may includes shapes of goods or combination of colours
d. All of the above
 34. Symbol of Maharaja of Air India is

a. Copyright
b. Patent
c. Trademark
d. All of the above

35. In India, the literary work is protected until

a. Lifetime of author
b. 25 years after the death of author
c. 40 years after the death of author
d. 60 years after the death of author

36. Design does not include

a. features of shape
b. composition of lines or colours
c. mode or principle of construction
d. None of the above

37. The agreement that is enforceable by law is known as

a. Valid agreement
b. Void agreement
c. Illegal agreement
d. Unenforceable agreement

38. Which of the following is (are) included in Geographical indications of Goods

a. Handicraft
b. Foodstuff
c. Manufactured
d. All of the above

1) A contract creates
a) rights in personam ,
b) b)rights in rem,
c) c)only rights and no obligations ,
d) d)only obligations and no rights.

2)A contract

a) may be void as originally entered into

b)may become void subsequent to its formation
c)cannot become void under any circumstances
d) may become void at the will of party.
6) The transactions collateral to an illegal agreement are

a) not affected in any manner ,

b)also tainted with illegality

c)voidable at the option of the plaintiff

d)void

8) Flaw in capacity to contract may arise from –

a) lack of free consent
b) lack of consideration
c) minority
d)absence of legal formalities.

9) Which of following result in an offer-

a) A declaration of intention b)an invitation to offer, c)an advertisement offering reward to

anyone who finds lost dog of the advertise, d)an offer made in a joke.

10) Acceptance may be revoked by the acceptor

a) t any time b)before the letter of acceptance reaches the offerer c)after the letter of
acceptance reaches the offeree d)before the death of the acceptor.

11) An advertisement to sell a thing by auction is

a) an offer b)an invitation to offer c)no offer at all d)a contract e) an obligation.

12) On theface of the ticket for a journey the words ―for conditions see back‖ are printed in
small print .The passenger –

a)is bound by the conditions whether he takes care to read them or not . b) is not bound by
the conditions c)may not take note of the conditions d)none of the above.
13) Anacceptance is not according to the mode prescribed but the offerer decides to keep quiet.
In such a case there is –

a) a contract, b) no contract, c)a voidable contract, d) an unenforceable contract.

14) There is a counter-offer when-

a)the offeree gives conditions for acceptance or introduces a fresh term in acceptance
b)the offerer makes a fresh offer c)the offeree makes some query . d )the offeree accepts it.

15) Consideration must move at the desire of –

a)the promisor, b) the promisee , c) promisor or any other third party , d)both the promisor and
the promisee . e)any third party

16) Consideration –

a)must move from the promisee , b)may move from the promisee or any other person c)may
move from the third party d) may move from the promisor.

17) Consideration must be something which the promisor –

a) is already bound to do ,b)is not already bound to do. c)may voluntarily do d)must not do.

18) Compromise of dispute claims –

a)is a good consideration for a contract b)is not a good consideration for a contract c) results in
a void agreement d)is not permitted by law.

19) A promiseto compensate ,wholly or in part , a person who has already voluntarily done
something for the promisor is

a)enforceable b)not enforceable because it is without consideration, c) void

d) voidable.

25)A person who is not party t a contract-

a)cannot sue, b)can sue , c) can sue only in well recognized cases d)none of

these.
26)Consideration in a contract –

a) may be past ,present or future, b)may be present or future only . c)must be present only.
D)must be future only.

27) A promise to subscribe to a charity .The promise is a

a) valid contract , b)voidable contract , c)void agreement d) void contract.

28) An agreement with or by minor is –

a)void b)voidable at the option of the minor c) voidable at the option of the other

party d) valid.

30)On attaining the age of majority a minor‘s agreement –

a) can be ratified by him b)cannot be ratified by him c)becomes void d)becomes valid.

31) A minor , by misrepresenting his age , borrows some money –

a) he can be sued for the fraud, b)he cannot be sued for the fraud c)he is liable to return the
money d) None of the above.

32) A person is usually of sound mind , but occasionally of sound mind –

a) he may enter in to a contract when he is of sound mind , b) he may not make a contract
even when he is of sound mind c)he cannot enter into a contract at all. d)None of the above.

33) A contract by an idot is –

a) voidable b) enforceable c)invalid d)void ab inito

34) Contracts made before war with an alien enemy which are against public policy are –

a) suspended and are revived after the war is over. b) dissolved c)not affected at all

d)void ab initio

37) The case of Mohiri Bibi v. Dharmodas Ghose (1903) deals with-

a)communication of offer b)communication of acceptance c)a minors agreements d) fraud e)a

lunatic‘s agreement.
38)Flaw in a capacity to contract may arise from –

a) want of consideration b)unsoundness of mind c)illegality of object d) uncertainty of object.

39) Where consent is caused by fraud or misrepresentation , the contract is –

a) voidable at the option of the aggrieved party b) void c) unenforceable d) not affected in any
manner .

40) Where both the parties to an agreement are under a mistake as a matter of fact essential to
the agreement ,the agreement I –

a) void b) voidable c )illegal d) not affected at all.

41) Merely because a contract was caused by one of the parties to it being under a mistake as to a
matter of fact , it is not-
a) voidable b) void c)affected at all d) none of the above.

42) Consent given to a contract under some misrepresentation by the other party makes the contract
–

a) void b) invalid c) unenforceable d) voidable

43) When a person positively asserts that a fact is true when his information does not warrant it
to be so, though he believes it to be true , there is –

a) misrepresentation b) fraud c) undue influence d) coercion.

44) Fraud exists when it is shown that a false representation has been made-

a) knowingly b)unknowingly c)unintentionally d)recklessly , not caring whether it is true or

false

45) A mere attempt at deceipt by a party to a contract –

a) is not fraud unless the other party is actually deceived b) is fraud whether the other party
has been deceived or not c) amounts to misrepresentation d ) none of the above.

46) When consent to an agreement is obtained by undue influence, the agreement is a –

a)contract voidable at the option of the party whose consent was so obtained b) void contract.
C) valid contract d)void agreement.
47) which of the following relationships raise presumption of undue influence?

a) landlord and tenant b)parent and child c)doctor and patient d) Husband and wife e)
Fiancé and fiancée f) creditor and debtor.

48) If there is error in cause ,the contract I

a) void b) voidable c) valid d)illegal

49) I there is error in consensus , the agreement is

a) void b)voidable c)avoid d)illegal e )not affected at all.

50) If there is a unilateral mistake as regards identity of a party caused by fraud of he other party ,
the contract is –

a) void ,b) voidable ,c)valid d)illegal

51) If there is a fraudulent misrepresentation as to the contents of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

52) If there is a fraudulent misrepresentation as to the character of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

53) The Case of Cundy v. Lindsay (1878)deals with –

a)Coercion b)undue influence c)mistake as to the nature of transaction d) mistake as regards

identity
54) A promise made without the intention of performing it amounts to –

a)innocent misrepresentation b) fraud c)negligent Misrepresentation d) wrongful

misrepresentation

55) The3 unlawful detention of any property of a person to obtain his consent to a contract
amounts to –

a) misrepresentation b) fraud c) undue influence d) coercion.

56) The collateral transactions to an illegal

agreement are- a)Void, b) illegal, c)voidable

,d)not affected at all

57) An agreement made with an alien enemy is

a)unlawful on the ground of public policy b)unlawful because it becomes difficult to be

performed c) valid, d)voidable.

58) A person enters into an agreement whereby he is bound to do something which is

against his public or professional duty. The agreement is –

a) void on the ground of public policy b) valid , c)voidable d) illegal

59) Regulation as to the opening and closing of business in a market are

a)not unlawful even if they are in restraint of trade . b)unlawful because they are in restraint of
trade . c) void d) not valid

60) An employee , by the terms of his service agreement , is prevented from accepting a similar
engagement after the termination of his service .The restraint –

a) valid b)void c) illegal d)unenforceable

61) The case of nordenfelt v. maxim nordenfelt gun co. (1904)deals with
a ) agreement in restraint of legal proceedings, b)minor‘s agreements c)agreement in restraint of
trade
d)agreement in restraint of marriage.

62) A contract of life insurance is-

a) a contract of indemnity b)not a contract of indemnity c)a wagering agreement d)a contingent
agreement.

63) an agreement the meaning of which is not certain ,is-

a) void b) voidable c)valid d) illegal

64) Which of the following are wagering agreements,-

a) a crossword competition the prizes of which depend upon correspondence of the

competitors solution with a previously prepared solution, b)picture puzzles ,c) share market
transactions in which delivery of stocks and shares is intended to be given and taken d) a
contract of insurance, e) an agreement to buy a ticket for a lottery. f) commercial
transactions , if the intention is not to deliver the goods but only to pay the difference in
price g) a crossword competition involving a good measure of skill for its successful solution.
65) An agreement to do an impossible act is,

a) void b) voidable c) illegal d) enforceable under certain circumstances.

66) A wagering agreement is .

a) forbidden by law, b) immoral, c) opposed to public policy d) none of the above.

67) A contract of insurance is a –

a) contract of guarantee b ) contingent contract c) wagering agreement d)unilateral agreement.

68) Which of the following are contingent contracts?

a)contract of insurance b)contract of guarantee , c)contracts for the sale of goods on credit
d0 Wagering agreements

69) A contingent contract is –

a) void b) voidable c)valid d) illegal

70) A contract to pay B Rs. 10,000 if B s house is burnt – This is a

a) wagering agreement b)void c)voidable agreement d)contingent contract e) contract of

guarantee .

71) A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a year .A
‗s promise can be enforced when the ship

a) arrives Mumbai a damaged condition during the years b)is lost during the year c)is sunk
during the years
d)arrives Mumbai in a good condition during the year.

72) Promises forming consideration for each other are known as,

a)independent promises b)dependent promises c)reciprocal promises. d)mutual promises

73) Each party is a promisor and a Promisee in case of –

a)past consideration b)present consideration c)every contract d) reciprocal promises

74) When promisee refuses to accept performance from the promisor who offers

to perform ,it is – a)attempted performance , b) vicarious performance ,

c)tender d) frustration of contract.

75) Sale of goods for cash is an example of –

a)mutual and independent promises b) mutual and dependent promises c) mutual and
concurrent promises
d)conditional and dependent promises,.

76) When a party to a contract transfers his contractual rights to another , it is

known as ,- a)rescission of contract b) waiver of contract c)discharge of contract,

d) assignment of contract.

77) Where the debtor does not expressly intimate or where the circumstances attending on a
payment do not indicate any intention , the creditor –

a)may apply it to any lawful debt due b)May apply it even to a time barred debt.

78) When two or more persons have made a joint promise ,then unless a contrary intention
appears from the contract, all such persons must fulfill the promise –

a) jointly b) severally c)jointly and severally d)jointly or severally

79) Assignment by operation of law takes place –

a)by the mutual consent of parties b)by the will of either party c)when the subject matter of a
contract ceases to exist
d)by the death of a party to a contract.

80) A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal

representation of A are – a)Liable for Rs. 10000b) liable for Rs. 6000 c)not liable at

all d) liable for Rs. 3000.

81) Owing to a strike in the factory of A , he is not able to supply the goods to B as per the terms of
the agreement >
The agreement in such a case

a) is discharged b) is not discharged c) becomes void d) is voidable at the option of A.

82) If a contract contains an undertaking to perform an impossibility , the contract is –

a) void ab initio b)void c)voidable at the option of the plaintiff

d) illegal

83)An agreement to do an act impossible in itself –

a) is void, b) is voidable c)is void ab initio d)becomes void when

impossibility is discovered

84)If a new contract is substituted in place of an existing contract , it is

called –

a)alteration b)rescission c) novation d)waiver

,e)remission

85)The case of Taylor v. caldwell (1883)deals with-

a)discharge of contract by destruction of subject matter , b) anticipatory breach of contract

c) discharge of contract by death of a party d)breach of contract.

86) A lends Rs. 500 to B . He later tells B that he need not repay the amount , the contract

is discharged by – a)breach b ) waiver c) novation d)performance

87) Acontract has become more difficult of performance due to some un-contemplated
events or delays .The contract –

a)is discharged b) is not discharged c)becomes void d) becomes voidable.

Where a contract could not be performed because of the default by a third person on whose
88)
work the promisor relied , it –

a) is not discharged b) is discharged c)becomes void d)becomes voidable.

89) Acreditor agrees with his debtor and a third party to accept that third party as his
debtor . The contract is discharged by, -

a) performance b)alteration c)waiver d)remission e) remission

90) The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954)deals with-

a) agreement opposed to public policy b) Supervening impossibility c) contract of

guarantee d) agency 91)A undertakes to paint a picture of B .He dies before he paints

the picture . The contract –

a) is discharged by death b)becomes voidable c)becomes voidable at the option of the legal
representatives of A . d)will have to be performed by the legal representatives of A.

92) The court may grant rescission where the contract is-

a) voidable at the option of the plaintiff b)void c)unenforceable

d) illegal 93)The foundation of modern law of dameges was laid

down in , -

a) Tinn v . Hoffman b) Taylor v. caldwell c)Hadley v. Baxendale d) Addis

v. Gramophone 94)Specific performance may be ordered by the court when –

a) the contract is voidable b) damages are an adequate remedy c)damages are not an
adequate remedy d)the contract is uncertain.

95) The measure of damages in case of breach of a contract is the difference between the –

a)contract price and the market price at the date of breach b) contract price and the
maximum market price during the term of the contract c) contract price and the price at which
the plaintiff might have sold the goods ,d) contract price and the price fixed by court.

96) The case of Hadley v. Baxendale (1854) deals with

a) anticipatory breach of contract. b) quantum of damages c)supervening impossibility d)quasi

contract.
97) Anticipatory breach of a contract takes place –

a)during the performance of the contract b)at the time when the performance is due. c) before
the performance is due d) at the time when the contract is entered into.

98)In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the
customer ,the court may award----

a) ordinary damages ,b) nominal damages c)exemplary damages d) contemptuous damages.

99) Ordinary damages are damages which---

a) arise in the usual course of things from the breach b)which are in the contemplation of the
parties at the time when the contract is made c) are agreed in advance d) are given by way of
punishment for breach of contract.

100)A agreed to sell 100 shares to B at Rs. 75 per share delivery to be given on the 1st march ,
B refused to accept delivery on 1st march as price had gone down to Rs. 60 per share
.Subsequently A sold these shares at Rs.92 per share –

a)A cannot recover any damages from B b)A will have to restore to BRs. 1700 i.e. the profit
he made c) A caan recover dameges to be determined by the President of the stock
exchange.

101) Exemplary damages are –

a) allowed in case of dishounor of a cheque by a banker having sufficient funds b) the

difference between the contract price and the market price c)allowed where in case of breach of
a contract , the plaintiff has not suffered any loss. D) none of these.

102) when an agreement is discovered to be void ,any person who has received any advantage
under such agreement

a) is bound to restore it b) is not bound to restore it c)is not bound to return it .d) may retain it

e) none of these 104)A minor has been supplied necessaries on credit-

a) he is not liable b) he is personally liable c) his estate is liable d) he is not personally liable

105) A person who finds good belonging to another and takes them into his custody ,is
subject to the same responsibility as a-

a) bailee b) true owner c) bailor d) pledge.

106) A finder of lost goods is a –

a) bailor b) Baile c) true owner d) thief

108) A contract of indemnity is a –

a) a contingent contract b) wagering contract c)quasi contract d) void contract

109) The definition of a contract of indemnity as given in the Indian contract act ,1872 includes

a)express promises to indemnity b)implied promises to indemnity c) cases where loss arises
from accidents and events not depending on the conduct of the promisor or any other person
d)cases where the loss is caused by the conduct of the promisor himself or by the conduct
of any person

110) S and P go into a shop ,S says to the shopkeeper ,C let P have the goods and if he does not pay
you , I will
―This is a –

a)contract of guarantee b)contract of indemnity c)wagering agreement d) quasi contract

111) Any variance made without surety‘s consent in the terms of the contract between the
principal debtor and the creditor discharges the surety –

a) as to transactions prior to variance b) as to transactions subsequent to variance c) as to all

transactions d) from his liability under the guarantee.

112) A guarantee obtained by a creditor by keeping silence as to material circumstances is –

a) valid b)voidable c)unenforceable d) invalid

113) Where there are co-sureties ,a release by the creditor of one of them –

a) discharges the other co-sureties b) does not discharge the other co-sureties c)makes all the
co-sureties immediately liable d) makes the contract of guarantee void.

114) The right of subrogation in a contract of guarantee is available to the

a) creditor b) principal debtor c) surety d)indemnified

115) The omission of the creditor to sue within the period of limitation –

a) discharges the surety b) does not discharge the surety c) makes the contract of guarantee
void d)makes the contract of guarantee illegal.
116) In a sale, the property in goods –
a) is transferred to the buyer , b) is yet to be transferred to the buyer c) may be transferred at
a future time d) is transferred when goods are delivered to the buyer e)is transferred when the
buyer pays the price

117) In a sale ,if the goods are destroyed , the loss falls on –

a) the buyer b) the seller c) partly on buyer and partly on seller d)the seller if price has not
been paid e) by the buyer.

118) The term property as used in the sale of goods act 1930 means

a) possession b ) ownership c) ownership and possession both d) the subject matter of contract of
sale.

119) If a price is not determined by the parties in a contract of sale , the buyer is bound to pay –
a)the price demanded by the seller ,b) a reasonable price c) the price which the buyer thinks is
reasonable d) the price to be determined by a third independent person.

120) The doctrine of caveat emptor applies –

a) incase of implied conditions and warranties b) when the buyer does not intimate the
purpose to the seller and depends upon his own skill and judgment c) when goods are sold by
sample d) when goods are sold by description

121) If a sale is by sample as well as by description , the implied condition is that the goods shall
correspond with –

a) sample b) description c) both sample and description d) either sample or description .

122) In a sale , there is an implied condition on the part of the seller that he –

a) has a right to sell the goods b) is in possession of the goods c) will have the right to sell d)

will acquire the goods 123)A condition is a stipulation which is a –

a) essential to the main purpose of contract of sale b) not essential to the main purpose of
contract of sale ,c) collateral to the main purpose of contract of sale d) none of the above.

124) In case of breach of a warranty , the buyer can –

a) repudiate the contract b) claim damages only c) return the goods d) refuse to pay the price
e) refuse to take delivery of the goods .

125) In case of breach of a warranty , the buyer can –

a) claim damages only b) repudiate the contract c)cannot return the goods d) refuse to take
delivery of the goods
1. Contract=Agreement + ________
A. enforceability by law
B. rules
C. clauses
D. None of the above
ANSWER: A
2. An agreement to do an impossible act
A. legal
B. void
C. voidable
D. illegal
ANSWER: B
3. An advertisement to sell a thing by auction is _____________.
A. an offer.
B. an invitation to offer.
C. no offer at all.
D. a contract.
ANSWER: B
4. a wagering agreement is _______.
A. immoral
B. forbidden by law
C. opposed to public policy
D. Legal prohibition
ANSWER: B
5. A contract of guarantee should be _______.
A. oral
B. written
C. oral or written
D. none of the above
ANSWER: C
6. Which the following strikes only at document and not transactions?
A. The Transfer of Property Act, 1882
B. The Registration Act, 1908
C. both (A) and (B)
D. None of these
ANSWER: C
7. The offer may be communicated _____________.
A. orally
B. By conduct only
C. By a written mode
D. All the above
ANSWER: D
8. Which of the following is indicated by the abbreviation Ltd at the end of a company’s name?
A. The shares are not transferable
B. The shares may not be offered to the public
C. The shares are freely transferable on the stock exchange
D. None of the above
ANSWER: B
9. Agreement=offer+ _______.
A. acceptance
B. rules
C. clause
D. validity
ANSWER: A
10. A written ordinary resolution requires the approval of which of the following?
A. More than 50% of those actually voting
B. More than 50% of those entitled to vote
C. Unanimous approval of those entitled to vote
D. All of the above
ANSWER: A
11. A sub-bailee is a person to whom the actual possession of goods is transferred by someone
A. who is himself not an owner of goods
B. who has a present right to possession of them as bailee of the owner
C. both (A) and (B)
D. None of these
ANSWER: C
12. A contract creates_____________.
A. rights in personam.
B. rights in rem.
C. only rights no obligations.
D. only obligations and no rights.
ANSWER: B
13. A supplies B, a lunatic, with necessaries suitable to his condition in life.
A. A is entitled to be reimbursed from Bs property
B. A is not entitled to be reimbursed from Bs property
C. A is entitled to be given a share in Bs property
D. None of these
ANSWER: A
14. An agreement not enforceable by law is said to _____________.
A. void.
B. voidable.
C. valid.
D. unenforceable.
ANSWER: A
15. Which parties are bound by the terms of the tender when one party submits a tender?
A. The person submitting the tender
B. The person requesting the tender
C. Neither party
D. Both parties
ANSWER: A
16. In the context of contract law, a bid at an auction is which of the following?
A. An invitation to treat
B. An acceptance
C. A counter-offer
D. An offer
ANSWER: D
17. A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life.
A. A is entitled to be reimbursed from B’s property
B. A is not entitled to be reimbursed from B’s property
C. A is entitled to be given a share in B’s property
D. None of these
ANSWER: A
18. For necessaries of life _____________.
A. A minor is liable
B. A minor’s estate is liable
C. The guardian is liable
D. All the above
ANSWER: B
19. What is the effect of a finding of contributory negligence in the law of tort?
A. It removes the requirement to pay damages
B. It reverses the payment of damages
C. It decreases the level of damages
D. All the above
ANSWER: C
20. A specific offer can be accepted by _____________.
A. any person.
B. any friend of offered.
C. a person to whom it is made.
D. any friend of offeree.
ANSWER: C
21. Consideration _____________.
A. money
B. money worth
C. promise
D. all the above
ANSWER: D
22. Consideration must be something which the promisor _____________.
A. is already bound to do.
B. is not already bound to do.
C. may voluntarily do.
D. must not do.
ANSWER: B
23. A supports B’s infant son. B promise to pay A’s expenses in so doing
A. This is not a contract
B. This is a contract
C. either (A) or (B)
D. None of these
ANSWER: B
24. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own.
A. He is not bound to pay A for them
B. He is bound to pay partially A for them
C. He is bound to pay A for them
D. None of these
ANSWER: C
25. A contracts to pay B a sum of money when B marries C. C dies without being married to B.
A. The contract still can be forced
B. The contract becomes void
C. Either (A) or (B)
D. None of these
ANSWER: B
26. Contributory negligence arises as a result of the fault of which of the following?
A. A third party
B. The respondent
C. The claimant
D. None of the above
ANSWER: C
27. An agreement made without consideration is _____________.
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
28. A promise to subscribe to a charity. The promise is a _____________.
A. voidable contract.
B. void agreement.
C. void contract.
D. valid contract.
ANSWER: C
29. A contracts to take in cargo for B at a foreign port. A’s Government afterwards declares war against the
country in which the port is situated.
A. The contract cannot become void when war is declared
B. The contract becomes partly void when war is declared
C. The contract becomes void when war is declared
D. None of these
ANSWER: C
30. On attainting the age of majority a minors agreement _____________.
A. can be ratified by him.
B. cannot be ratified by him.
C. becomes void.
D. becomes valid.
ANSWER: B
31. Breach of which of the following terms does NOT allow the possibility of the aggrieved party terminating
the contract?
A. A condition
B. An innominate term
C. A warranty
D. All the above
ANSWER: C
32. Which of the following, in the context of entering into a contract, constitutes a binding offer to sell a
unique item of furniture?
A. Placing an advert in a newspaper with a price attached
B. Placing it on display inside a shop with a price attached
C. Telling someone the price you may be willing to accept for it
D. Telling someone you will reduce the marked price on it by 10%
ANSWER: D
33. Abe issued an invitation to tender for a contract and Bea submitted her terms. Which of the following
statements is accurate?
A. Abe made an offer and Bea made a counter-offer
B. Abe made an offer which Bea accepted
C. Both Abe and Bea made invitations to treat
D. Abe made an invitation to treat and Bea made an offer
ANSWER: D
34. A contract by an idiot is_____________.
A. voidable.
B. enforceable.
C. invalid.
D. void ab initio.
ANSWER: D
35. A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by post.
A. The debt is discharged only when A receives the due amount
B. The debt is discharged as soon as B puts into the post a letter containing the note duly addressed to A
C. Either (A) or (B)
D. None of these
ANSWER: B
36. A fraudulently informs B that A’s estate is free from encumbrance. B thereupon buys the estate. The estate is subject to a mortgage.
A. B may avoid the contract
B. B may insist on its being carried out, and the mortgage- debt redeemed
C. Either (A) or (B)
D. None of these
ANSWER: C
37. A gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a certain day. He forfeits his recognizance.
A. He is not liable to pay the penalty
B. He is liable to pay the penalty
C. He is liable to partially pay the penalty
D. None of these
ANSWER: B
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 amount than the sum due in respect of the advance.
A. A did not employ undue influence
B. A employs undue influence
C. Either (A) or (B)
D. Either (A) or (B)
ANSWER: B
39. A hires a horse in Calcutta from B expressly to march to Benaras. A rides with due care, but marches to Cuttack instead. The horse accidentally
falls and is injured.
A. A is not liable to make compensation to B for the injury to the horse
B. A is partially liable to make compensation to B for the injury to the horse
C. A is liable to make compensation to B for the injury to the horse
D. None of these
ANSWER: C
40. Which of the following is not a type of cybercrime?
A. data theft
B. stalking
C. hacking
D. antivirus
ANSWER: D
41. Which of the following statements relating to limited liability partnerships is correct?
A. They are limited to a maximum of 20 members
B. They must have a minimum of two members
C. They must have at least one unlimited member
D. All the above
ANSWER: B
42. Cyber-crime can be categorized into ________ types.
A. 2
B. 3
C. 4
D. 5
ANSWER: A
43. Which of the following is not a type of peer-to-peer cyber-crime?
A. phishing
B. trojans
C. MitM
D. credit card leak
ANSWER: D
44. In the context of the law of agency, an agent will NOT be liable for a contract in which of the following instances?
A. Where the agent fails to disclose that they are acting as such
B. Where the agent intends to take the benefit of the contract and does not disclose they are acting as an agent
C. Where the agent acts on their own behalf although claiming to be an agent
D. None of the above
ANSWER: A
45. Which of the following is not an example of a computer as weapon cyber-crime?
A. Credit card fraudulent
B. Spying someone using keylogger
C. IPR Violation
D. Pornography
ANSWER: B
46. Which of the following can be accepted so as to form a binding contract?
A. A supply of information
B. A quotation of price
C. A statement of intent
D. An agreement to enter into a future contract
ANSWER: B
47. Contracts are legally enforceable agreements. Which of the following statements regarding contractual agreements is true?
A. They must be in writing
B. They must be evidenced in writing
C. They need not be in writing
D. None of the above
ANSWER: C
48. Which of the following is not done by cybercriminals?
A. Unauthorized account access
B. Mass attack using Trojans as botnets
C. Email spoofing and spamming
D. Report vulnerability in any system
ANSWER: D
49. Which of the following statements in relation to the issuing of bills of lading is true?
A. Risk passes to the shipper
B. Risk remains with the seller
C. Risk passes to the carrier
D. Risk passes to the buyer
ANSWER: D
50. What is the name of the IT law that India is having in the Indian legislature?
A. India’s Technology (IT) Act, 2000
B. India’s Digital Information Technology (DIT) Act, 2000
C. India’s Information Technology (IT) Act, 2000
D. The Technology Act, 2008
ANSWER: C

51. In which year India’sIT Act came into existence?

A. 2000
B. 2001
C. 2005
D. 2013
ANSWER: A
52. ________ agency is the most common form of agency.
A. Incidental
B. Express
C. Apparent
D. Implied
ANSWER: B
53. A(n) ________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.
A. ratified contract
B. exclusive principal contract
C. apparent agency contract
D. exclusive agency contract
ANSWER: D
54. Agency by ________ occurs when (1) a person misrepresents himself or herself as another’s agent when in fact he or she is not and (2) the
purported principal accepts the unauthorized act.
A. indemnification
B. ramification
C. ratification
D. indoctrination
ANSWER: C
55. Apparent agency is also referred to as ________.
A. agency by estoppel
B. express agency
C. authorized agency
D. agency by default
ANSWER: A
56. What is the full form of ITA-2000?
A. Information Tech Act -2000
B. Indian Technology Act -2000
C. International Technology Act -2000
D. Information Technology Act -2000
ANSWER: D
57. Under which section of IT Act, stealing any digital asset or information is written a cyber-crime.
A. 65
B. 65D
C. 70
D. 17
ANSWER: A
58. What is the punishment in India for stealing computer documents, assets or any software source code from any organization, individual, or from any
other means?
A. 6 months of imprisonment and a fine of Rs. 50,000
B. 1 year of imprisonment and a fine of Rs. 100,000
C. 2 years of imprisonment and a fine of Rs. 250,000
D. 3 years of imprisonment and a fine of Rs. 500,000
ANSWER: D
59. The common law doctrine of ________ is based on the legal theory of ________ liability.
A. respondeat superior; nefarious
B. respondeat superior; vicarious
C. respondeat inferior; nefarious
D. respondeat inferior; vicarious
ANSWER: B
60. What is the updated version of the IT Act, 2000?
A. 2007
B. 2008
C. 2010
D. 2012
ANSWER: B
61. A(n) ________ agency results if a third party entering into a contract knows (1) that the agent is acting as an agent for a principal and (2) the actual
identity of the principal.
A. partially disclosed
B. undisclosed
C. inherently disclosed
D. fully disclosed
ANSWER: D
62. A(n) ________ agency occurs if the agent discloses his or her agency status but does not reveal the principal’s identity and the third party does not
know the principal’s identity from another source.
A. fully disclosed
B. partially disclosed
C. undisclosed
D. inherently disclosed
ANSWER: B
63. A principal accepts an agent’s unauthorized contract through ________ of the contract.
A. subornation
B. subrogation
C. ramification
D. ratification
ANSWER: D
64. Principals often employ persons and businesses that are not their employees to perform certain tasks on their behalf. These persons and businesses
are called ________ contractors.
A. dependent
B. sub
C. general
D. independent
ANSWER: D
65. Which of the following is not a method of terminating an agency relationship by acts of the parties?
A. mutual agreement
B. bankruptcy of the principal
C. lapse of time
D. achievement of agency purpose
ANSWER: B
66. Which of the following is not a method of terminating an agency relationship by operation of law?
A. death of either the principal or the agent
B. insanity of either the principal or the agent
C. mutual agreement
D. bankruptcy of the principal
ANSWER: C
67. What type of cyber-crime, its laws and punishments does section 66 of the Indian IT Act holds?
A. Cracking or illegally hack into any system
B. Putting antivirus into the victim
C. Stealing data
D. Stealing hardware components
ANSWER: A
68. he Sale of Goods Act, was enacted on
A. 15 March 1930
B. 18 April 1930
C. 5 April 1980
D. None of these
ANSWER: A
69. The Sale of Goods Act, was enforced on
A. 1st day of May, 1930
B. 1st day of June, 1930
C. 1st day of July, 1930
D. None of the above
ANSWER: C
70. The Sale of Goods Act, 1930 is based on
A. US Sale of Goods Act
B. English Sale of Goods Act
C. Indian Sale of Goods Act
D. None of the above
ANSWER: B
71. Section 2, of The Sale of Goods Act, is about
A. definitions
B. articles
C. clauses
D. none of these
ANSWER: A
72. As per-section 2(1), a person who buys or agrees to buy goods is called
A. buyer
B. seller
C. customer
D. none
ANSWER: A
73. The voluntary transfer of possession from one person to another is called
A. delivery
B. transfer
C. hand over
D. none
ANSWER: A
74. As per section 2 sub-section 8, of the Sales of Goods Act, insolvent means a person
A. Who has ceased to pay his debts in the ordinary course of business
B. Or can not pay his debts as they become due
C. Both (a) and (b)
D. None of above
ANSWER: C
75. As per section 2(12), of the Sale of Goods Act, quality of goods include
A. State of goods
B. Conditions of goods
C. Both (a) and (b)
D. None of above
ANSWER: C
76. The goods identified and agreed upon at the time a contract of sale is made are called
A. ordinary goods
B. specified
C. opportunity
D. none of the above
ANSWER: B
77. There are_____, essential requisites of sale
A. 2
B. 3
C. 5
D. none of the above
ANSWER: D
78. Acceptance may be revoked by the acceptor
A. at anytime
B. before the letter of acceptance reaches the offerer
C. before the death of other party
D. none
ANSWER: B
79. consideration must move at the desire of—-
A. the promisor
B. the promisee
C. promisor or any other party
D. any other party
ANSWER: A
80. An agreement with a minor is—-
A. valid
B. void
C. voidable
D. none
ANSWER: B
81. on attaining the age of majority a minor’s agreement
A. becomes void
B. becomes valid
C. can be ratified by him
D. cannot be ratified by him
ANSWER: D
82. A contract by an idiot is—-
A. voidable
B. enforceable
C. invalid
D. void ab initio
ANSWER: D
83. The unlawful detention of any property is ——
A. undue influence
B. fraud
C. mistake
D. none of these
ANSWER: A
84. If a new contract is substituted in place of an existing contract—
A. alteration
B. rescission
C. waiver
D. novation
ANSWER: D
85. In case of breach of warranty,the buyer can —–
A. repudiate
B. return the goods
C. claim damages
D. none
ANSWER: C
86. An administrator is appointed to realise a hierarchy of objectives. What is an administrator’s first and principal object ive?
A. To achieve a better result for the company’s creditors as a whole than would be likely if the company were wound up.
B. To realise property in order to make a distribution to one or more secured creditors.
C. To rescue the company as a going concern.
D. To wind the company up and distribute the assets to persons entitled to them.
ANSWER: C
87. An administrator can be appointed in one of several different ways. Which ONE of the following is not a valid method of appointment?
A. An administrator can be appointed by the court.
B. An administrator can be appointed by a floating charge holder.
C. An administrator can be appointed by the company’s auditor.
D. An administrator can be appointed by the company.
ANSWER: C
88. Regarding the proposal for a company voluntary arrangement, which ONE of the following statements is NOT true?
A. If the company is in administration, the proposal will be made by the administrator.
B. If the company is in liquidation, the proposal will be made by the liquidator.
C. If the company is neither in administration or liquidation, the proposal can be made by the directors.
D. If the company is neither in administration or liquidation, the proposal can be made by the members or creditors.
ANSWER: C
89. Regarding the appointment of a receiver, which ONE of the following statements is NOT true
A. A receiver may be a natural person or a body corporate.
B. A charge holder can appoint a receiver if the instrument that created the charge states so.
C. The court can appoint a receiver upon an application from a creditor.
D. An undischarged bankrupt cannot normally act as a receiver.
ANSWER: A
90. Which ONE of the following does NOT have the right to petition the court for a compulsory winding-up order?
A. A member of the company.
B. Any creditor of the company.
C. The directors of the company.
D. The auditor of the company.
ANSWER: D
91. A compulsory winding-up order can only be made on a number of specified grounds. The majority of such orders are made on the basis of which
ground?
A. Where the company has resolved, by special resolution, to compulsorily wind up the company.
B. Where the company is an ‘old public company.’
C. The company is unable to pay its debts.
D. Where the company does not commence business within a year from its incorporation.
ANSWER: C
92. Which ONE of the following statements describes the difference between a members’ voluntary winding up and a creditors’ voluntary winding-up
A. If a majority of the directors make a declaration of solvency, the winding up will be a members’ voluntary winding up. If no such declaration is
made, it will be a creditors’ voluntary winding up.
B. A creditors’ voluntary winding up is commenced by the creditors, whereas a members’ voluntary winding up is commenced by the members.
C. A members’ voluntary winding up is commenced by passing a special resolution, whereas a creditors’ voluntary winding-up does not require a
special resolution.
D. None of the above
ANSWER: A
93. How does fraudulent trading under the Companies Act 2006 differ to fraudulent trading under the Insolvency Act 1986?
A. Fraudulent trading under the Companies Act 2006 can apply at any time, whereas fraudulent trading under the Insolvency Act 1986 can only apply
during the course of a winding-up.
B. Fraudulent trading under the Companies Act 2006 imposes civil liability only, whereas fraudulent trading under the Insolvency Act 1986 imposes
criminal liability also.
C. There is no difference – both provisions are identical.
D. Fraudulent trading under the Companies Act 2006 only applies to registered companies, whereas fraudulent trading under the Insolvency Act can
also apply to partnerships and sole proprietorships.
ANSWER: A
94. compromise of disputed claims
A. results in a void agreement
B. good consideration
C. not a good consideration
D. none of these
ANSWER: B
95. Which two types of business structure are created via a process of incorporation?
A. Companies and sole proprietorships.
B. Partnerships and limited liability partnerships.
C. Companies and limited liability partnerships.
D. Companies and partnerships.
ANSWER: C
96. The main object of a contract of sale is —-
A. transfer of possession
B. transfer of property
C. delivery of goods
D. payment of price
ANSWER: B
97. An application to incorporate a company by registration must contain certain information. Which ONE of the following pieces of information is not
required?
A. Whether the member’s liability will be limited or unlimited.
B. The names of the company’s proposed officers.
C. The intended address of the company’s registered office.
D. The proposed objects of the company.
ANSWER: D
98. Concerning a company’s liability, which ONE of the following statements is true?
A. A company cannot be convicted of a crime that requires proof of mens rea.
B. A company will not be found liable for the acts of its directors – the directors will be personally liable instead.
C. A company will only be vicariously liable for the acts of its employees if the employee was sufficiently senior within the company.
D. Where liability requires a level of knowledge, the liability of employees and directors can be attributed to the company.
ANSWER: D
99. In a sale, if the goods are destroyed, the loss falls on________________
A. The buyer.
B. The seller.
C. Partly on the buyer and partly on the seller.
D. The seller if price has not been paid.
ANSWER: A
100. What is ‘corporate personality?’
A. Corporate personality means that the members in general meeting are regarded by the law as a person.
B. Corporate personality means that the board of directors is regarded by the law as a person.
C. Corporate personality means that the company as an entity is regarded by the law as a person.
D. Corporate personality means that all of the companies within a corporate group are regarded by the law
as one person.
ANSWER: C
101. The agreement made with an alien enemy is
A. valid
B. voidable
C. unlawful
D. difficult
ANSWER: C

102. consideration is —-
A. need not be adequate
B. reasonable
C. both
D. none of these
ANSWER: A
103. Consent given under coercion makes the contract—–
A. void
B. valid
C. voidable
D. invalid
ANSWER: C
104. What is known as a charter of a Company?
A. Memorandum of Association
B. Bye-laws
C. Articles of Association
D. Prospectus.
ANSWER: A
105. The name of a company can be changed by________________.
A. an ordinary resolution
B. a special resolution
C. the approval of the union government
D. a special resolution and with the approval of the central government
ANSWER: A
106. The __________defines a companys relations with the outside world.
A. prospectus .
B. memorandum of association.
C. articles of association .
D. statement in lieu of prospectus
ANSWER: B
107. Mark out the type of alteration that is permitted in the articles of association____
A. that may not be in the company’s interest.
B. that is contrary to the provisions of the companies act.
C. that increases a members liability without his written consent.
D. that is consistent with the memorandum of association
ANSWER: D

108. Which of the following companies must file a statement in lieu of prospectus?
A. A private limited company.
B. A cooperative society.
C. A company that has issued a prospectus.
D. A public company that has not issued a prospectus
ANSWER: D
109. The most important document of a company is its__________.
A. prospectus.
B. annual report.
C. memorandum of association.
D. articles of association
ANSWER: C
110. In an agreement to sell, the seller gets for price if________
A. The goods have been delivered to the buyer.
B. The goods have not been delivered to the buyer.
C. There is a specific agreement.
D. It is not a specific agreement.
ANSWER: C
111. In a contract of sale, unless goods are ascertained, there is______________
A. A sale.
B. An agreement to sell.
C. A void agreement.
D. An unenforceable agreement.
ANSWER: B
112. The rules and regulations for the internal management of a company are contained in its___.
A. prospectus .
B. annual report .
C. memorandum of association .
D. articles of association
ANSWER: D
113. A/an _______may become a director of a company.
A. partnership firm .
B. person of unsound mind .
C. individual .
D. body corporate
ANSWER: C
114. How many directors of a public company, unless the articles provide otherwise, must be appointed by the company in general meeting
A. All the directors .
B. One half of the directors .
C. Two-thirds of the directors .
D. Three-fourths of the directors
ANSWER: C
115. Which of the following is beyond the powers of the board of directors?
A. To issue debentures .
B. To make loans .
C. To remit the payment of any debt due by a director .
D. To issue prospectus
ANSWER: C
116. Holding company means a company ______________.
A. which holds other company.
B. a government company.
C. a chartered company.
D. a subsidiary company
ANSWER: A
117. The partnership entity may be regarded as ____________.
A. a legal entity .
B. an accountable entity .
C. both a legal and accountable entity .
D. neither a legal nor an accountable entity
ANSWER: D
118. A promoter is a person who ______________.
A. is a director .
B. is a relative of the company .
C. is a wellwisher of the company .
D. takes part in the companys incorporation
ANSWER: D
119. The amount of minimum subscription may be learnt from the ______________.
A. prospectus.
B. memorandum of association.
C. articles of association .
D. records of general meetings
ANSWER: A
120. When can a private company commence business ?
A. at any time .
B. after applying for registration.
C. after obtaining the certificate of incorporation.
D. after obtaining the certificate of commencement of business
ANSWER: C
121. The doctrine of constructive notice implies that __________.
A. with the registrar of companies
B. every person dealing with the company is deemed to have notice of the documents field
C. regularity of proceedings need be enquired into a notice of a weeks period is to be given for every
exchange of correspondence
D. indoor management
ANSWER: B
122. A letter of provide must be demanded in the transmission of shares when a person______.
A. is declared insolvent .
B. misbehaves .
C. becomes of unsound mind .
D. has died
ANSWER: D
123. The right of lien excises by an unpaid seller is to _________
A. Retain possession.
B. Regain possession.
C. Recover price and other charges.
D. Recover damages.
ANSWER: A
124. ——— is the constitution of the company
A. memorandum
B. articles
C. prospectus
D. ownership
ANSWER: A
125. Which of the following are characteristics of a company ?
A. It has unlimited liability.
B. It exists only in contemplation of law
C. It has not a perpetual succession
D. It comes to an end on the death of all its members
ANSWER: B
126. The liability of a shareholder in a company limited by shares is ____________.
A. unlimited .
B. limited by guarantee.
C. limited to the unpaid value of shares subscribed by him.
D. none of the above
ANSWER: C
127. The altered Memorandum must be filed with the Registrar within ______________.
A. 1 month of the company Law Boards order .
B. 2 months of the company Law Boards order.
C. 3 months of the company Law Boards order.
D. 4 months of the company Law Boards order
ANSWER: C
128. Which of the following companies need not have their own articles of Association ?
A. unlimited companies.
B. companies limited by guarantee.
C. private companies limited by shares.
D. public companies limited by shares
ANSWER: D
129. Contract which is inferred from the act of the parties is called___________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
ANSWER: C
130. Contract is one which is made by words spoken or words is called____________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
ANSWER: B
131. the Articles of a company conflict with the Memorandum _______________.
A. the Articles shall prevail.
B. the Memorandum shall prevail
C. the directors will resolve the conflict.
D. the court will resolve the conflict
ANSWER: A
132. A threat to commit suicide amounts to __________.
A. fraud.
B. undue influence.
C. coercion.
D. mistake.
ANSWER: C
133. Agreement in restraint of marriage is ___________.
A. valid.
B. voidable.
C. coercion.
D. void.
ANSWER: D
134. Quantum meruit means __________.
A. let the buyer beware.
B. as long as.
C. as soon as.
D. as much as earned.
ANSWER: D
135. The memorandum and Articles of a company are open to inspection by ___________.
A. the members of the company
B. the members and creditors of the company.
C. everybody .
D. the Registrar
ANSWER: C
136. A guarantee which is given for the good conduct of a person is called ___________.
A. prospective guarantee.
B. specific guarantee.
C. fidelity guarantee.
D. continuing guarantee.
ANSWER: C
137. A person who acts as an agent as well as guarantor is called ________.
A. factor.
B. brocker.
C. delcredere agent.
D. banker agent.
ANSWER: A
138. A statement in lieu of prospectus is required to be issued ___________.
A. by all companies which issue shares or debentures
B. by public companies when shares are issued among friends and relatives.
C. by private companies as they do not issue shares to the public
D. by all companies
ANSWER: B
139. An agreement made without consideration ____________.
A. valid.
B. voidable.
C. coercion.
D. void.
ANSWER: D
140. A promise made without any intention of performing it is ______________.
A. fraud.
B. undue influence.
C. misrepresentation.
D. mistake.
ANSWER: C
141. Share capital of a company means______________.
A. equity share capital .
B. preference share capital
C. equity and preference share capital .
D. equity and preference share capital and debentures
ANSWER: C
142. A shareholder in a company___________.
A. can be its debenture holder
B. cannot be its debenture holder
C. alone can become its debenture holder
D. must also become its debenture holder within a year of being a shareholder
ANSWER: A
143. An agreement enforceable by law is called as ___________.
A. valid contract.
B. voidable contract.
C. executed contract.
D. void contract.
ANSWER: A
144. The ________defines the scope of a company’s activities.
A. prospectus .
B. statutory declaration .
C. memorandum of association .
D. articles of association .
ANSWER: C
145. _________ companies must have their own Articles.
A. Government companies.
B. Unlimited companies.
C. Companies limited by shares.
D. Registered companies.
ANSWER: B
146. The duties of Company Secretary s regarding company meetings are restricted upto_____.
A. before company meeting.
B. during company meeting
C. after company meeting.
D. ln all the above situations
ANSWER: D
147. A private company ________issue deferred shares with disproportionate voting rights.
A. can only
B. can.
C. cannot.
D. can with the prior approval of the government
ANSWER: A
148. Shares can be issued_________.
A. at par.
B. at discount.
C. at premium.
D. all of the above
ANSWER: D
149. Identify those persons who do not enjoy the right of genera lien
A. Finder of goods
B. Factors
C. Bankers
D. None
ANSWER: A
150. Ascertained goods means____ goods
A. Specific
B. General
C. Goods sent for approval basis
D. None
ANSWER: A

1. Indian Contract Act extends to the whole of India excepts to the state of?
a. Assam
b. Jammu & Kashmir
c. West Bengal
d. None of these
Ans: B
2. An agreement enforceable by law is called?
a. Void
b. Promise
c. Contract
d. All of these
Ans: C

3. Chapter I of the Indian Contract Act deals the ______ of proposals?

a. Communication
b. Revocation
c. Acceptance
d. All of these
Ans : D
4. In order to convert a proposal into a promise the acceptance must...?
a. Absolute
b. Unqualified
c. Absolute & Unqualified
d. None of these
Ans: C
5. Agreement means ________________.
a. Offer + acceptance
b. Offer + contract
c. Contract + acceptance
d. Enforceable by law
Ans:A
6. The two contracting parties must agree as regards the subject-matter of the
contract at the same time & in the same sense is called as __________.
a. personam
b. consensus-ad-idem
c. reciprocal promise
d. accepted proposal
Ans: B
7. Technical term of void contract is _________.
a. voidable contract
b. void-ab-initio
c. personam
d. void agreement
Ans: B

8. Communication of a proposal is complete when it comes to the knowledge of the person to whom it s made.
a. True
b. Partly True
c. False
d. None of these
Ans: A
9. Incase of breach of contract of sale of some rarea article or thing for which there is no substitue available in the market the court may grant-
a.Quantum Meruit
b.Rescission
c.Specific Performance
d. Injunction
Ans: C
10. _______ is one the object of which is unlawful.
a. Void contract
b. Wager
c. An illegal agreement
d. Voidable contract
Ans: C
11. A proposal, when accepted becomes a ________.
a. promise
b. contract
c. offer
d. consensus
Ans: A
12. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
13. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
a. wagering contract
b. bilateral contract
c. illegal contract
d. unenforceable contract
Ans: B
14. Promises which form the consideration or part of the consideration for each other is
called as __________.
a. reciprocal promise
b. reciprocal offer
c. reciprocal performance
d. consideration
Ans:A
15. If any parties to the contract refuses or fails to perform his part of the contract or by
his act makes it impossible to perform his obligation under the contract, it is called
as _________.
a. breach of contract
b. void contract
c. tender
d. novation
Ans:A
16. A Quasi- contract under Indian Contract Act
a. Is an agreement
b. Is a contract
c. Has on a legal obligation
d. None of these
Ans: C

17. A contingent contract dependent on the non happening of specified uncertain event within fixed time can be enforced if the event __
a. Does not happen within a fixed time
b. Becomes impossible before the expiry of the fixed time
c. Happens within a fixed time
d. Both (a) & (b)
Ans: D
18. An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Ans:A
19. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B
20. Substitution of a new contract for the original contract is called as ______.
a. novation
b. rescission
c. alteration
d. remission
Ans:A
21. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C

22. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B
 23. The court order to restrain a person not to do a particular activity is called as
________.
a. quantum meruit
b. specific performance
c. injuction
d. novation
Ans:C
24. Coercion involves the usage of _________.
a. fraud
b. misrepresentation
c. undue influence
d. all the above
Ans:D
25. A contract which arises on the basis of coercion is called as _________.
a. void contract
b. voidable contract
c. illegal contract
a. lawful contract
Ans:A

26. A contingent contract is ____________ contract.

a. Void
b. Voidable
c. Valid
d. Illegal
Ans:C
27. Damages which may reasonably be supposed to have been in the contemplation of
both parties as he probable result of the breach of a contract is known as ________.
a. ordinary damages
b. special damages
c. vindictive damages
d. nominal damages
Ans:B
28. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
29.Vindictive Damages have been awarded-
a. for a breach of promise to marry
b. for a wrongful dishonour of a cheque by banker processing adequate funds of the customer
c. Either (1) OR (2)
d. Both (1) and (2)
 30. An Executary Consideration is-
a. Consideration promised by an executive of a company
b. consideration which consists simply of a mutual exchange of promise each being the consideration for the other.
c. consideration which should be executed on a future date
d. consideration which should be executed before the court
Ans: C
31. When a person signifies to another his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such
act or abstinence-
he is said to-
a. enter into a contract
b. make a proposal
c.accept an offer
d. create legal obligation
Ans: B
32. An agreeement to agree in future is
a. valid
b. voidable
c. invalid.
d. illegal
Ans: C
33. An agreement entered into with free consent and lawful but inadequate consideration is--
a. valid
b. voidable
c. invalid.
d. illegal
Ans: A
34. A minor's estate is liable for the ______ supplied to him
a. Luxuries
b. Necessities
c. Necessaries
d. All of these
Ans: C
35.The aggrieved party in breach of contract has not suffered any loss by reason of the
breach of contract, the damages recoverable by him is ________.
a. payment of interest
b. ordinary damages
c. special damages
d. nominal damages
Ans:D
36. If time is the essence of a contract and the promisor fails to perform the contract by the specified time, the contract:
a. remains valid
b. becomes void
c. becomes unorceable
d. becomes voidable at the instance of the promise
Ans: D
37. __________ damages are measured on the basis of extent of shock to the sentiments of the promisee
a. Vindictive
b. Nominal
c. Loss of reputation
d. Discomfort
Ans: A

38. There are _________ ways for actual breach of contract.

a. 1
b. 2
c. 3
d. 4
Answer:B
39. The technical term “Quantum Meruit” denotes ____________.
a. performance of a contract
b. quantity involved in contract
c. suit for specific performance
d. as much as earned
Answer:D
40. Law of quasi-contract is also known as ________.
a. Law of returns
b. Law of restitution
c. Law of repudiation
d. Law of contract
Ans: B
41. The contract of General Insurance is--
a. Contingent
b. Voidable
c. Valid
d. None of these
Ans: A
42. ___________ means intentional relinquishment of a right under the contract
a. waiver
b. wager
c. alteration
d. rescission
Ans:A
43. Termination of contractual relations between the parties to a contract is called as
________ .
a. performance of contract
b. discharge of contract
c. winding up of contract
d. none of the above
Ans:B
44. ____________ means passing over rights and liabilities from one person to another
person.
a. Devolution
b. Endorsement
c. Passing the buck
d. Escapism
Ans:A
 45.An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Answer:A
46. Responsibility of finder of goods under contract is __________.
a. indemnifier
b. bailee
c. owner
d. despatcher
Ans:B
47. A person who finds goods belonging to another and takes them into his custody, is
subject to the same responsibility as a ________________.
a. bailee.
b. true owner .
c. thief.
d. agent.
Ans:A
48. A finder of lost goods is a _____________.
a. bailer.
b. bailee.
c. true owner.
d. thief.
Ans:B
49. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A
50. The position of finder of lost goods is that of a ___________.
a.Bailer .
b.Bailee.
c.Surety.
d.Principal debtor.
Ans: B
51. A gratuitous bailee is liable for defects in the goods bailed __________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases.
d. in particular case.
Ans:B
52.A gratuitous bailment is one which is _____________.
a. supported by consideration
b. not Supported by consideration
c. not enforced by law
d. void
Ans:B
53. According to Sale of Goods Act, 1930, “Seller” means a person
a. Who only agrees to sell the goods
b. Who only sells the goods
c. Who sells or agrees to sell the goods
d. None of these
Ans: C
54. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A
55. In sale, if the goods are destroyed, the loss falls on _____________.
a. the buyer.
b. the seller.
c. partly on the buyer and partly on the seller.
d. third party.
Ans:A
56. If sale is by sample as well as by description, the implied condition is that the goods
shall correspond with ____________.
a. sample.
b. description.
c. both sample and description.
d. either sample or description.
Ans:C
57. In a sale, there is an implied condition on the part of seller that he __________.
a. has right to sell the goods.
b. is in position of the goods.
c. will have the right sell.
d. will not have the right to resell.
Ans:A
58. A condition is a stipulation which is____________.
a. essential to the main purpose of contract of sale.
b. not essential to the main purpose of the contract of sale.
c. collateral to the main purpose of contract of sale.
d. additional security.
Ans:A
59. ' Contract of Sale' under Sale of Goods Act, 1930, comprises of contracts which are,
a. Executory
b. Concluded
c. Both executory and executed
d None of these
Ans: C
60. In a contract of sale of goods the implied condition of wholesomeness applies to---
a. Medicines
b. Eatables
c. Cloth
d. Computers
Ans: B

61. The consideration in a contract of Sale is called--

a. Price
b. Exchange Money
c. Barter Money
d. Rewards
Ans:A
62. When a breach of condition is treated as a breach of warranty, the buyer cac--
a. Repudiate the contract
b. Reject the goods
c. Claim damages
d. None of these
Ams: C
63. The main objective of a contract of sale is ______________.
a. transfer of possessing of goods.
b.transfer of property in goods from seller to buyer.
c. delivery of goods.
d. payment of price.
Ans:B
64. When there is a contract for the sale of unascertained goods, the property in
goods___________.
a. passes when the buyer pays the price.
b. does not pass until the goods are ascertained.
c. when the contract is entered into.
d. when the buyer accepts the goods.
Ans:B
65. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
a. accept the whole.
b. reject the whole.
c. accept the goods ordered for and can return the excess quantity.
d. either a or c
Ans:D

66. The lien of an unpaid seller depends on _____________.

a. possession.
b. title.
c. ownership.
d. possession and ownership.
Ans:A
67. An unpaid seller can excises the right of stoppage in transit when the carrier holds the
goods ____________.
a. as sellers agent.
b. as buyer s agent.
c. as agent of both of them.
d. in his own name.
Ans:D
 68. The sale of goods act, 1930 deals with _________.
a. movable goods only.
b. immovable goods only.
c. both movable and immovable goods.
d. all goods except ornaments.
Ans:A
69. The term, ‘goods’ for the purpose of sale of goods act does not include _________.
a. money.
b. actionable claims.
c. immovable property.
d. all the above.
Ans:B
70.A contract for the sale of ‘furniture goods’ is_____________.
a. sale.
b. agreement to sell.
c. void.
d. voidable.
Ans:B
71. ___________ gives the buyer only a right to claim damages.
a. Condition.
b. Guarantee.
c. Warranty.
d. Indemnity.
Ans:C
 72. Which of the following is not an implied condition in a contract of sale _________.
a. condition as to title.
b. condition as to description.
c. condition as to freedom from the encumbrance.
d. condition as to a sample.
Ans:C
73. A contract of sale may be __________.
a. absolute only.
b. condition only.
c. absolute and conditional.
d. indemnity.
Ans:C
74. S and P gets into a shop. S says to the shopkeeper C “let P have the goods, and if he
does not pay you, I will”. “This is a __________.
a.contract of guarantee.
b.contract of indemnity.
c.wagering contract.
d.quasi-contract.
Ans:A
75. A bailment is usually created by agreement between ______________.
a. the principal & the agent.
b. the contracted parties.
c. the bailer & the bailee.
d. the guaranteed & parties.
Ans: C.
76. The gratuitous bailer is liable to bailee for the defects in the goods bailed
___________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases of loss.
d. in certain case of loss.
Ans:B
77.The term 'property' as used in the Sale of Goods Act, 1930 means_____________
a. possession.
b. ownership.
c. both ownership and possession.
d. the subject matter of contract of sale.
Ans:B
78.The term “contract to sale” is a generic term which includes both __________ .
a. sale & an agreement to sell.
b. contract & agreement.
c. possession & Ownership of goods.
d. transfer to ownership & possession.
Ans: A

79. _________ form the subject of a contract of sale.

a. Assets.
b. Consideration
c. Goods.
d. Agreement to sell.
Ans: C
80. There is a constructive delivery of goods_____________.
a. When the seller hands over to the buyer the key of the warehouse where the goods are
lying.
b. When a third person in possession of the goods acknowledged to the buyer that he
holds them on his behalf.
c. When the seller physically delivers the goods to the buyers.
d. When the seller asks the buyer to take delivery of the goods.
Ans:B
81.Where there is no specific agreement as to place, the goods sold are to be delivered
at the place______________.
a. at which they are at the time of sale.
b. of the buyer.
c. desired by the buyer.
d. to be determined by the seller.
Ans:A
82. An implied warranty or condition as to quality or fitness for a particular purpose may
be annexed by the usage of ________.
a. trade.
b. goods.
c. commerce.
d. agreement to sell.
Ans: A

83. __________ is an illicit act dissuading the intending purchase r from bidding.
a. Withholding the goods.
b. Damping.
c. Knockout.
d. Repudiation.
Ans: B

84. Where there is an unconditional contract for the sale of specific goods in a
deliverable state, the property in the goods passes to the buyer when ______________.
a. the goods are delivered to the buyer.
b. the price is paid by the buyer.
c. the contract is made.
d. the buyer accepts the good.
Ans:C
85. ___________ is a contract in which the terms are started in words (Written or
Spoken) by the parties.
a. Express contract.
b. Implied contract.
c. Executed contract.
d. Executory contract.
Ans: A
86. The doctrine of caveat emptor applies______________
a.in case of implied conditions and warranties.
b.when the buyer does not intimate the purpose to the seller and depends upon his own
skill and judgment.
c.when goods are sold by sample.
d.when goods are sold by description.
Ans:A
87. “A” who purchases certain goods from B by a misrepresentation and pledges them
with “C”. The pledge is _____________.
a. valid.
b. void.
c. voidable.
d. invalid.
Ans:B
88. In a hire – purchase agreement, the hirer ____________.
a. has an option to buy the goods.
b. must but the goods.
c. must return the goods.
d. is not given the possession of the goods.
Ans:A
89. ____________ means competency of the parties to enter into a valid contract.
a. Solvency.
b. Capacity.
c. Consequences.
d. Position.
Ans: B
90. The measure of damages in case of breach of a contract is the difference between the
___________.
a. contract price and the market price at the date of breach.
b. contract price and the maximum market price during the terms of contract.
c. contract price and the price at which the plaintiff might have sold the goods.
d. contract price and the price fixed by the court.
Ans:A

91. Technical term of contract without consideration is called as ________ .

a. nadum pactum.
b. void – ad-initio.
c. consensus –ad-idem
d. caveat emptor.
Ans: A
92. Mr. A, a tradesman, leaves goods at Mr. B’s house by mistake. Mr. B treats the goods
as his own. He is bound to pay for Mr.A. This is an example for obligation to pay for
________.
a. non-gratuitous act
b. gratuitous act
c. coercion
d. quantum meruit
Ans:A
93. Where the buyer wrongfully refuses to aceept the goods, the seller may recover the damages
a. for the reasonable charges for the care and the custody of goods
b. for the loss caused by the non accepatnce of goods
c. either (a) OR (b)
d. both (a) AND (b)
Ans: D
94. Under the Sale of Goods Act 1930, the existing goods are classified as
a. Specified Goods
b. Ascertained Goods
c. Unascertained Goods
d. All of the above
Ans: D
95. Following is not a document of title
a. railway receipt
b. bill of lading
c. dock of warrant
d. None of these
Ans: D
 96. When the terms of the contract of sale of goods are such that by reserving the right of disposal, the seller commits a breach of contract, and the
goods appropriated to the contract does not cause the property in goods to pass to the buyer. It is--
a. Partly True
b. True
c. False
d. None of these
Ans: B
97. When the seller exercises right of lien or right of stoppage of goods in transit and gives notice to the buyer for payment and the buyer does not
pay or tender within reasonable time , an unpaid seller can--
a. re-sale the goods
b. cannot re-sale the goods
c. ask again to the buyer
d. take possesion and mark the good as bad
Ans: A

98. Ignorance of law is _____________.

a. an excuse
b. not an excuse
c. punishment
d. offence
Ans:B
99. ‘A’ permits a coolie to put his luggage to a carriage. The contract comes into
existence as soon as the coolie puts the luggage. So ‘A’ has only to fulfill his part.
 This is an example for __________.
a. unilateral contract
b. bilateral contract
c. implied contract
d. executed contract
Ans:A
100. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C

SI Ste A B C D An Unit
m s. No.
1 Ignorance of law is an excuse. not an excuse punishment. offence. B 1
2 Agreement means . offer + offer + contract contract + Enforceable by A 1
acceptance acceptance law
3 Contract means agreement + . promise. consensus. enforceability by personam C 1
law
The two contracting parties must agree as
4 personam. consensus-ad-idem reciprocal promise accepted proposal B 1
regards the subject-matter of the contract at the
same time & in the same sense is called as .
5 There is essential element of contract 3 5 9 10 D 1
6 Technical term of void contract is . voidable void-ab-initio personam void agreement B 1
contract
7 Third party does not acquire any rights in case of void agreement voidable contract executed contract executory A 1
. contract
8 is one the object of which is unlawful Void contract Wager An illegal Voidable contract C 1
agreement
9 A proposal, when accepted becomes a . promise. contract. offer. consensus. A 1
10 The law relating to contracts is contained in the 1870 1871 1872 1873 C 1
Indian contract act,
.
The term is defined as a legal tie which imposes
11 agreement. champerty. obligation. promise. C 1
upon a definite person or persons the necessity of
doing or abstaining from doing a definite act or
acts.
12 According to validity, contract can be classified 4 5 6 3 D 1
into types.
13 According to formation, contract can be classified 1 2 3 4 C 1
into types.
14 According to performance, contract can be 1 2 3 4 B 1
classified into types.
15 According to Execution, Contract can be classified 1 2 3 4 B 1
into types
16 If the terms of a contract are expressly agreed upon express executory contract implied contract express offer. A 1
between the parties at the contract
time of formation of the
A permits a coolie to put his luggage to a carriage.
17 The contract comes into existence as soon as the unilateral bilateral contract. implied contract. executed contract A 1
coolie puts the luggage. So A has only to fulfill his contract.
part.
This is an example for .
18 The obligation of both the parties to the contract are wagering bilateral contract illegal contract unenforceable B 1
pending at the time of contract contract.
formation of the contract is called as .
19 A contracts to pay Rs. 10,000 if Bs house is burnt. wagering contingency contract. executory contract quasi contract. B 1
This is a . contract
20 An advantage or benefit, moving from one party to lawful lawful object free consent. illegal A 1
the other is called as consideration consideration.
 .

21 A agrees with B to put life into Bs dead wife, the impossible to low capacity of the illegal. fraud A 1
agreement is void as it is perform parties
.
22 Attempted performance can be otherwise called as tender. B. estimation. C. quotation. D. discharge. A 1
.
23 Promises which form the consideration or part of reciprocal B. reciprocal C. reciprocal D. A 1
the consideration for each other, promise. offer. performance. consideration
are called
24 Termination contractual relations between the performance of discharge of contract winding up of none of the B 1
parties to a contract is called as contract. contract above.
.
25 Discharge of performance can be broadly classified A. 4. B. 5. C. 6. D. 3. C 1
into
categori
es
26 Substitution of a new contract for the original novation. rescission. lteration. remission. A 1
contract is called as .
27 means intentional relinquishment of a right waiver. B. wager. C. alteration. D. rescission. A 1
under the contract.
28 If any parties to the contract refuses or fails to breach of B. void contract. C. tender. D. novation. A 1
perform his part of the contract or contract.
by his act makes it
29 occurs when the party declares his anticipatory B. actual breach of C. discharge of D. remission. A 1
intention of not performing the
contract in prior. breach of contract. contract.
contract.
30 There are ways for actual breach of contract 1 2 3 4 A 1
When a contract has been broken, the injured
31 party can recover from the other party such ordinary special damages. vindictive nominal damages A 1
damages as naturally & directly arose in the damages. damages.
course of things from the
breach is called as
32 means a right not to perform obligation Rescission. Novation. Quantum merit. Punishment. A 1
Damages which may reasonably be supposed to
33 have been in the contemplation of both parties as ordinary special damages. vindictive nominal B 1
he probable result of the breach of a contract is damages. damages. damages.
known as
34 The court order to restrain a person not to do a A. quantum B. specific C. injuction. D. novation. C 1
particular activity is called as meruit. performance.
35 A person should not be allowed to enrich himself A. contingent B. wagering C. quasi D. void C 1
unjustly at the expense of contract. contract. contract. contract.
another is the principle of
36 The technical term Quantum Meruit denotes A. B. quantity involved C. suit for D. as much as D 1
performance in contract. specific earned.
of a performance.
contract.
37 Law of quasi-contract is also known as A. law of B. law of C. law of D. law of B 1
returns. restitution. repudiation. contract.
38 Coercion involved the usage of A. fraud. B. C. undue D. all the D 1
misrepresentation influence. above.
.
39 Responsibility of finder of goods under contract is A. B. bailee. C. owner. D. dispatcher. B 1
indemnifier.
40 A contract which rises on the basis of coercion is A. void B. voidable C. illegal D. lawful A 1
 called as contract. contract. contract. contract.
41 Contingent contract is a . A. void. B. voidable. C. valid. D. illegal. C 1
42 A quasi- contract . A. is a B. is an C. has only a legal D. contingent C 1
contract. agreement. obligation. contract.
43 When an agreement is discovered to be void, any A. is bound to B. is not bound to C. may retain D. no need to A 1
person who have received any restore it. return it. it. return.
advantage under such agreement .
44 A contract of indemnity is . A. contingent B. wagering C. quasi D. void A 1
contract. contract. contract. agreement
A. when he B. when he acts for C. when he acts for D. when he act
45 An agent is personally liable . A 1
acts for an a named a principal not as a sub-
undisclosed principal. in existence. agent.
principal.
46 A who purchases certain goods from B by A. valid. B. void. C. voidable. D. invalid. A 1
representation pledges them with C.
the pledge is .
47 The right of subrogation in a contract of guarantee A. B. principle C. surety . D. C 1
is available to the creditors. debtors. indemnifier.
.
48 The omission of the creditor to sue with in the A. discharges B. dose not discharge C. makes the D. makes the B 1
period of limitation . the surety. the surety. contract of contract illegal.
guarantee
void.
A. a right of C. a right of both D. no lien at all
49 A bailee has . B. a right of A 1
particular lien particular and over the
general lien.
over the good general lien. goods bailed
bailed.
50 The position of finder of lost goods is that of a A. bailor . B. bailee. C. surety. D. principal B 1
. debtor.
51 A gratuitous bailee is liable for defects in the goods A. even if he is B. only if he is C. in all D. in particular B 1
bailed . not aware aware of them. cases. case.
of them.
52 A gratuitous bailment is one which is . A. supported B. not Supported by C. not enforced D. void. B 1
by consideration. by law.
consideratio
n.
A. at the time
53 For a valid ratification the principal must have of the contract B. at the time of C. at the time of D. at any A 1
contractual capacity . and at the time ratification. contract. time.
of
ratification .
A. not entitled B. entitled C. entitled to
54 If there no agreement, an agent is . D. gets B 1
to any reasonable remuneration
commission
remuneratio remuneration. which he thinks is only.
n. reasonable.
55 For his commission of remuneration an agent has A. a general B. a particular C. no lien at D. neither B 2
. lien . lien. all. general lien nor
particular
lien.
56 Concept of caveat emptor denotes . A. buyer B. customer C. customer D. customer C 2
behavior. loyalty. awareness on attitude.
purchase.
A. is B. is yet to be C. may be D. is transferred
57 In a sale, the property in goods . A 2
transferre transferred to transferred when the buyer
d to the the buyer. at future pays the price.
buyer. time.
58 In sale, If the goods are destroyed, the loss falls on A. the buyer B. the seller . C. partly on the D. third A 2
. . buyer and party.
partly on the
seller.
59 Specific goods are those which are identified A. at the time B. by an expert. C. by the D. by the A 2
. of contract seller. buyer.
of sale.
If a price is not determined by the parties in a A. the price C. the price
60 B. a reasonable D. cost. B 2
contract of sale the buyer is bound to pay . demanded demanded
price.
by the by the
seller. seller.
A. in case of B. when the buyer
does not intimate the C. when goods D. when goods
61 The doctrine of caveat emptor applies . implied B 2
purpose of seller and are sold by are sold by
conditions
depends upon his on
 and skill and sample. description.
warranties. judgment.

62 If sale is by sample as well as by description, the A. sample. B. description. C. both sample D. either C 2
implied condition is that the and sample or
goods shall correspond with description. description.
63 In a sale , there is an implied condition on the part A. has right to B. is in position of C. will have the D. will assure A 2
of seller that he . sell the the goods. right sell. the goods.
goods.
A. essential to B. not essential to the C. collateral to
64 A condition is a stipulation which is . the main D. additional A 2
main purpose of the main purpose
purpose of security
the contract of of contract of
contract of sale. sale.
sale.
65 In the case of breach of a warranty, the buyer can A. repudiate the B. claim damage C. refuses to pay D. refuses to take B 2
. contract. only. the price. the delivery
of the goods.
66 The main objective of a contract of sale is . A. transfer of B. transfer of C. delivery of D. payment of B 2
possessing property in goods goods. price.
of goods. from seller to
buyer.
67 Risk follows ownership . A. only when B. only when price C. whether D. even when the C 2
goods have has been paid. delivery has been price has
been made or not. not been paid
delivered.
A. the goods B. the goods have C. there is a D. there is a
68 In an agreement to sell, the seller can sue for price C 2
have been not been delivered specific general
if .
delivered to to the buyer. agreement. agreement.
the buyer.
Where there is an unconditional contract for the A. the goods D. the buyer
69 B. the price is paid C. the contract is C 2
sale of specific goods in a deliverable state, the are delivered accepts the
by the buyer. made.
property in the goods passes to the buyer when to the buyer. goods.

.
70 Where there is a contract for the sale of A. passes when es not pass until the C. when the D. when the B 2
unascertained goods, the property in the buyer goods are ascert contract is buyer accepts
goods . pays the entered into. the goods
price.
71 When there is a specific agreement as to place, the A. at which B. of the buyer. C. decide by the D. to be A 2
goods sold are to be delivered they are at seller. determined by the
at the place . time of seller
sale.
 Unless otherwise agreed, were goods are send by A. must inform D. no need to
72 the buyer in B. may insure the C. must insure A 2
the seller to the buyer by a route involving a sea insure the
time to get the goods. the goods.
transit of the seller . goods
goods
insured.
73 A seller delivers goods in excess of the quantity A. accept the B. reject the C. accept the D. accept the part A 2
ordered for. The buyer whole. whole. goods ordered of goods.
may . for and
returns.
74 In contract, the seller may sue for the . A. price of B. price only. C. damages D. both for C 2
damages. only. price and
damages.
75 The lien of an unpaid seller depends on . A. B. title. C. ownership. D. possession and A 2
possession. ownership.
A. where the
goods have B. where the buyer D. for the price of
76 An unpaid seller can excises his rights of lien C. for the price of C 2
. been sold on has not the goods. the goods and
credit and become expenses.
terms of credit insolvent.
have not
expired.
77 The right of lien excised by an unpaid seller is to A. retain B. regain C. recovery price D. damages. A 2
. possession. possession. and other
charges.
78 An unpaid seller can excises the right of stoppage in A. as sellers B. as buyer s C. as agent of D. in his own D 2
transit when the carrier holds agent agent. both of them. name.
the goods
79 If the goods are rejected by the buyer and the carrier A. is deemed B. is not deemed to C. D. not yet B 2
or the bailee continuous to to be an be an end. commences. commences.
be in possession of them the transit . end.
An unpaid seller has not given notice of resale to A. the unpaid B. the unpaid seller C. the buyer can D. the buyer
80 B 2
the buyer. On the resale there is a loss . seller can cannot recover it recover it from must compensate
recover it from from the buyer. unpaid seller. the unpaid seller.
the buyer.
81 The sale of goods act, 1930 deals with . A. movable B. immovable C. both D. all goods A 2
goods only. goods only. movable and except
immovable ornaments.
goods.
82 The term, goods for the purpose of sale of goods A. money. B. actionable C. immovable D. all the B 2
 act does not include . claims. property. above
83 A contract for the sale of furniture goods is . A. sale . B. agreement to C. void. D. voidable. B 2
sell.
84 In a hire purchase agreement, the hirer . as an option to B. must but the C. must return D. is not given the A 2
buy the go goods. the goods. possession
of the goods
85 Gives the buyer only a right to claim damages is A. B. guarantee. C. warranty. D. indemnity C 2
known as . condition.
Which of the following is not an implied condition C. condition as to
86 in a contract of sale A. condition as B. condition as to D. condition as to C 2
freedom from
to title. description. a sample.
. the
encumbrance.
87 The term goods exclude . A. stock and B. growing C. actionable D. services. C 2
shares. crops. claim.
88 A contract of sale may be . A. absolute B. condition C. absolute and D. indemnity. C 2
only. only. conditional.
89 The sale of goods act, 1930 dose not cover . A. existing B. immovable C. future D. services B 2
good. goods. goods.
90 S and P gets into a shop. S says to the shopkeeper, A. contract of B. contract of C. wagering D. quasi- A 2
C let P have the goods, and if guarantee. indemnity. contract. contract.
he does not pay you,
A. a right of a C. a right of both D. no lien at all
91 A bailer is a . B. a right of A 2
particular lien particular and over the
generation
over the goods general lien goods bailed
bailed
92 A, who purchases certain goods from B by a A. valid. B. void. C. voidable. D. invalid. B 2
misrepresentation pledges them with
C. the pledge is .
93 In a sale, if the goods are destroyed, the loss falls A. the B. the seller. C. partly on the D. the seller if A 2
on . buyer. buyer and price has not
partly on the been paid.
seller.
94 The term property as used in the Sale of Goods Act, A. B. ownership. C. ownership as D. the subject B 2
1930 means . possession. well as matter of
possession. contract of
sale.
 A. in case of B. when the buyer
does not intimate the C. when goods D. when goods
95 The doctrine of caveat emptor applies . implied A 2
purpose to the seller are sold by are sold by
conditions
and depends upon his sample. description.
and own skill and
warranties. judgment.
If a sale is by sample as well as by description, C. both sample D. either
96 A. sample. B. description. C 2
the implied condition is that the goods shall and sample or
correspond with . description. description.
97 In a sale, there is an implied condition on the part of A. has a right B. is in possession of C. will have the D. will acquire A 2
the seller that to sell the the goods. right to sell. the goods.
he . goods.
A. essential to B. not essential to the C. collateral to
98 A condition is a stipulation which is . the main D. not A 2
main purpose of the main purpose
purpose of mandatory.
contract of sale. of contract of
contract of sale.
sale.
99 In case of breach of a warranty, the buyer can A. repudiate the B. claim damages C. return the D. refuse to pay B 2
. contract. only. goods. the price.
100 The main objective of a contract of sale is . A. transfer of B. transfer of C. delivery of D. payment of B 2
possession property in goods. goods. price.
of goods.
101 Risk follows ownership . A. only when B. only when price C. whether D. even when C 2
goods have has been paid. delivery has been price has not
been made or not. been paid.
delivered.
A. the goods B. the goods have D. it is not a
102 In an agreement to sell, the seller gets for price if C. there is specific C 2
have been not been delivered agreement. specific
.
delivered to to the buyer. agreement.
the buyer.
103 In a contract of sale, unless goods are ascertained, A. a sale. B. an agreement to C. a void D. an B 2
there is . sell. agreement. unenforceable
agreement.
Where there is an unconditional contract for the A. the goods D. the buyer
104 B. the price is paid C. the contract is C 2
sale of specific goods in a deliverable state, the are delivered accepts the
by the buyer. made.
property in the goods passes to the buyer when to the buyer. good.
 .

If the contract is silent as to the party A. the C. the party who

105 B. goods seller is to be under the contract D. any party may C 2
who is to appropriate the goods . buyer is
appropriate. is first to act is to appropriate
to
appropriate.
appropri
ate.
106 In a C.I.F., contract the property in goods passes A. goods are B. goods are received C. contract is D. price is A 2
from the seller to the buyer when shipped. by the buyer. entered into. paid.
the .
A. when the B. where a third
person in C. when the seller D. when the
seller hands
107 There is a constructive delivery of goods . possession of the physically seller asks the B 2
over to the
goods delivers the buyer to take
buyer the key of
the warehouse acknowledged to the goods to the delivery of the
buyers. goods.
where buyer that he holds
the goods are them on his
lying. behalf.
108 In case of breach of a warranty, the buyer can A. repudiate the B. claim damages C. return the D. refuse to pay B 2
. contract. only. goods. the price.
109 The main objective of a contract of sale is . ransfer of B. transfer of C. delivery of D. payment of B 2
possession of go property in goods. goods. price.
110 In a contract of sale, unless goods are ascertained, A. a sale. B. an agreement to C. a void D. an B 2
there is . sell. agreement. unenforceable
agreement.
Where there is an unconditional contract for the A. the goods D. the buyer
111 B. the price is paid C. the contract is C 2
sale of specific goods in a deliverable state, the are delivered accepts the
by the buyer. made.
property in the goods passes to the buyer when to the buyer. good.

.
A seller delivers goods in excess of the C. accept the
112 A. accept the B. rejects the D. accept the part B 2
quantity ordered for. The buyer may . goods ordered for
whole. whole. of goods.
and return the
excess.
 Where the neglect or refusal of the buyer to take D. both for
113 A. price or B. price only. C. damages A 2
delivery of goods amounts to a repudiation of the price and
damages. only.
contract, the seller may sue for the . damages.
 D. whether the
114 The lien of an unpaid seller depends on . A. B. title. C. ownership. A 2
buyer has paid
possession.
the price or
not.
Unless otherwise agreed, where goods are A. he is not B. it is sufficient if he C. he is bound to D. he may keep
115 intimates to the seller B 2
delivered to the buyer and he rejects them . bound to return deliver them them with
them to the that he has rejected to the seller. him.
seller. the
goods.
116 Where there is no specific agreement as to place, A. at which B. of the buyer. C. desired by the D. to be A 2
the goods sold are to be they are at buyer. determined by
delivered at the place . the time of the
sale. seller.
117 is an agreement between two or more parties Contract Agreement Offer Acceptance A 1
law enforceable in a court of
118 A contract based on the equitable principal that a Executed Bilateral contract Quasi contract Simple contract C 1
person shall not be allowed to contract
enrich himself at the expense of another
119 A contract which cannot be enforceble in a court Voidable Void contract Valid contract Vaild for Law B 1
law contract
120 All are agreement, but all agreements are not Contract Agreement Offer Acceptance A 1
necessarily contracts.
121 A person who is competent to enter into a contract A minor A person of sound A lunatic A unsoundmind B 1
must be mind woman
122 must be according to the mode described. Contract Agreement Offer Acceptance D 1
123 When one person signifies to another his Proposal Offer Agreement Contract A 1
willingness to do or to abstain from
doing anything, it is known as
124 A contract is based on an Proposal Offer Agreement Contract C 1
125 is a contract which is inferred from the acts or Express Quasi Void Implied D 1
conduct of the parties
126 is a contract which is entered into, between Express Quasi E-commerece Implied C 1
parties via internet.
127 An contract is a contract in which both the parties Express Exectuted Executable Implied B 1
have performed their
respective obligations.
128 All contracts which are not made under seal are Simple Legal Express Implied A 1
contracts.
129 In commercial and business agreements, the Simple Legal relations No relations Avoid relations B 1
presunption is that the parties relations
intended to creat
130 An offer may be communicated Orally By conduct only By written mode By orally, D 1
conduct and
written
131 Acceptance may be communicated by Any Person Authorised person His agent His Principal B 1
132 An offer may be made to a Specific person Any person Public person only Specific and B 1
only Public person
only
133 Newspaper advertisements are not Offer Acceptance Communication Revocation A 1
134 An acceptance to an offer in ignorance of the offer Offer Acceptance Communication Revocation B 1
is no
135 When two parties make identical offers to each Simple offer Specific offer Cross offers acceptance C 1
other in ignorance of each other's
offer, the offer are known as
136 An acceptance with a variation is nothing but a Public offer Specific offer Cross offers Counter offer D 1
137 An offer is said to be general when it is made To a definite To the public at large To a group of To a team of B 1
person persons persons
An acceptance may be revoked at any time before
138 Advertisement Agreement Lapse Communication D 1
the of the
acceptance is complete as against the acceptor, but
not afterwards.
139 An offer may come to an end by Lapse Revocation Lapse/ Revocation non performance C 1
140 An offer can be communicated After Contract Before it can be After acceptance After Agreement B 1
accepted
141 means relationship subsisting the parties who Proposal Offer Privity of Acceptance 1
have entered into contractual C
obligations. contract
142 Consideration may be Latest Current Recent Present and D 1
future
143 The consideration may be Always Always Positive Never C 1
Positive Negative and Positive and
negative negative
Defeat the
144 A consideration should not Be opposed to Result in At the C 1
provisi
public policy some desire of the
ons of interest promiser
any
law
145 A valuable consideration may not consist Some profit Some Nither profit Some profit D 1
either in to one party determinent to or and
the other party determinent determinet
to to one party
one arty
146 An agreement made without consideration is Valid Void Voidable Executable B 1
147 No consideration is necessary to create an Agreement Agency Implied Executable B 1
contract contract
148 A consideration must be real and not Real TRUE Illusory Valid C 1
149 of the consideration is for the Adequa Non Non Non 1
parties to consider at the time A
of meeting the cy Sufficien compete capabili
agreement.
cy ncy ty
150 A contract without consideration is Valid Void Voidable Executable B 1
151 Consideration must move at the desire of the desire of the desire of desire of the A 1
promisor Acceptor the offerer
promesee
152 Minors agreements are Valid Void ab initio Voidable General B 1
153 A minor is a person who has not completed 16 years 18 years 21 years 25 years B 1
154 Persons disqualified by law do not include Convicts Insolvents Agents Principal C 1
155 For necessaries supplied to a minor A minor is Thre guardian's The A minor's D 1
liable property is guardian property is
liable is liable liable
156 A persons who has lost his mental ability Lunatic Alien Drunkan Idiot D 1
 completelity is
157 A person whose mental powers are derangd Lunatic Alien Drunkan Idiot A 1
is
158 A minor can be a or Promisee , Principal, Acceptor, Principal, A 1
Beneficiary Beneficiary Promisor Acceptor
159 A minor cannot be adjudge as Promisor Insolvent Offerer Acceptor B 1
160 A is a person who suffers from Lunatic Alien Drunkan Idiot A 1
intermittent intervals of sanity and
insanity.
161 Capacity of contract means Lunatic Idiot person Compete Drunkan C 1
person nt person person
162 A fraud means A A promice Knowing A C 1
representati made for ful false representati
on of fact performance represe on by
ntation
mistake
163 When the consent of a person is obtained by Valid Void Voidable Executable B 1
fraud, the contract is
164 When the consent to an agreement is Voidable Valid Void Executable A 1
obtained by coercion the agreement is
165 A false statement of facts made without any Fraud Coercion Misrepre Undue C 1
intention to device the other party sentation influence
falls under the category of
166 The effect of a bilateral mistake is that the Voidable Valid Void Executable A 1
agreement is
167 The mistake of law of land does not render Voidable Valid Void illigal B 1
the agreement
168 A unilateral mistake does render the Voidable Valid Void Executable C 1
agreements
Q1) Which of the following is an instance of constructive delivery of goods Marks : 1.0
Id: 45406

1) the transfer of bill of lading 2) attornment by a person in possession of the

goods
3) both (a) and (b) 4) only (b) and not (a).

Explanation:

Q2) Flaw in capacity to contract may arise from- Marks : 1.0

Id: 45347

1) Lack of free consent 2) Lack of consideration

3) Minority 4) Absence of legal formalities

Explanation:
Q3) Under section 5 of the Sale of Goods Act, 1930, a contract of sale of goods can be Marks : 1.0
Id: 45458

1) in writing 2) by words of mouth

3) partly in writing and partly by words of mouth 4) either (a) or (b) or (c)

Explanation:

Q4) A proposal can be accepted Marks : 1.0

Id: 45320

1) by notice of acceptance 2) by performance of condition of proposal

3) by acceptance of consideration for a 4) all the above

reciprocal promise
Explanation:
Q5) a Contingent Contract to do or not to do anything on the happening of an uncertain Marks : 1.0
future Explanation:
_x000D_ Id: 45541
event 2) is enforceable since the time of making it
1) is never enforceable
4) becomes enforceable only on the happening of
3) becomes enforceable in the immediate that event.
possibility of happening of that event

Q6) Void agreement signifies Marks : 1.0

Id: 45297

1) agreement illegal in nature 2) agreement not enforceable by law

3) agreement violating legal procedure 4) agreement against public policy

Explanation:
Q7) A contract which is valid initially however, ceases to be enforceable subsequently, Marks : 1.0
the contract Id: 45341
1) becomes voidable when enforceable 2) becomes voidable when enforceable
3) becomes void when it enforceable 4) becomes void since inception

Explanation:

Q8) The term property as used in Sale of Goods Act, 1930 means

1) Possession 2) Ownership

Marks : 1.0
3) ownership& possession both 4) subject matter of contract of sale Id: 45400
Explanation:
Q9) The Sale of Goods Act, 1930 applies to the whole of India except Marks : 1.0
Id: 45393

1) Jammu & Kashmir 2) Dadra and Nagar Haveli

3) Goa, Daman & Diu 4) all the above

Explanation:

Q10) When the consent to the contract is caused by coercion, the contract under section Marks : 1.0
19 is Id: 45327

1) valid 2) voidable

3) void 4) illegal

Explanation:
Q11) Contractual rights & duties are created by Marks : 1.0
Id: 45562

1) State 2) Statute

3) Parties 4) Custom & Usage

Explanation:
Q12) The person to whom the bill is negotiated by endorsement called …………….. Marks : 1.0
Id: 45558

1) The endorser 2) The holder

3) The payee 4) The endorsee

Explanation:
Q13) Contract without consideration made in writing & registered and made on account of
Marks : 1.0 natural love and affection is Id: 45362

1) void 2) voidable

3) valid 4) unenforceable

Explanation:

Q14) Where there is no specific agreement as to place, the goods sold are to be delivered
Marks : 1.0 at the place Id: 45454

1) at which they are at the time of sale 2) of the buyer

3) desired by the buyer 4) to be determined by the seller

Explanation:

Q15) Under the Sale of Goods act 1930 stipulation may be Marks : 1.0
Id: 45568

1) Condition 2) Warrenty

3) Option A & B 4) None of these

Explanation:
Q16) A contract not specifying the place of performance Marks : 1.0
Id: 45386

1) performed at any place to the knowledge of the 2) the promisor has to apply to the promisee for
promisee appointment of a place of performance &
perform the promise at that place

3) the promisor need not seek any instructions 4) the promisor can perform the promise at a
from the promisee as to the place of place other than the place appointed by the performance
promisee

Explanation:

Q17) Where in a contract of sale, a condition has been inserted for the benefit of both the
Marks : 1.0 parties Id: 45450

1) may be waived by either party unilaterally 2) it may be waived by mutual agreement

3) it cannot be waived 4) either (a) or (b).

Explanation:
Q18) Which of the following are 'goods' within the meaning of section 2(7) of the Sale of Marks : 1.0
Goods Act, 1930 Id: 45419

1) things attached to land which are agreed to be 2) things forming part of the land agreed to be
severed before sale severed before sale

3) both (a) and (b) 4) neither (a) nor (b)

Explanation:

Q19) The question of the insolvency of a buyer, under the Sale of Goods Act, 1930, is of Marks : 1.0
importance in connection with Id: 45424
1) the seller's lien on the goods 2) the right of stoppage in transit

3) both (a) and (b) 4) only (a) and not (b)

Explanation:

Q20) Which of the following statements is correct, in relation to the withdrawal of an

o
f
f
e
r
?
M
a
r
k
s
:
1
.
0
I
d
:
4
5
 5
3
5

1) An offer may only be withdrawn by the offeror. 2) An offer may be withdrawn by the offeror or a
reliable third party.

3) Once an offer has been made it can never be 4) An offeror has one week to withdraw his offer.
withdrawn.

Explanation:
Q21) Under section 2(2) of the Sale of Goods Act, 1930, 'delivery' means Marks : 1.0
Id: 45403
1) gratuitous transfer of possession from one 2) involuntary transfer of possession from
person to another one person to another

3) voluntary transfer of possession from one 4) ) transfer of possession irrespective of

person to another whether it is gratuitous, involuntary or
voluntary, from one person to another.
Explanation:

Q22) Considerations & objects are unlawful where it is Marks : 1.0

 Id: 45333
1) forbidden by law or defeat the provision of any 2) which is fraudulent law

3) which is immoral & against the public policy

4) all the above

Explanation:

Q23) Which one of the following terms is not implied into contracts for the sales of goods Marks : 1.0
in a private sale? Id: 45556

1) The seller has the right to sell. 2) The goods are of satisfactory quality.

3) The goods match the sample. 4) The goods match their description.
Explanation:
Q24) In a C.I.F. contract, the property in goods passes from the seller to the buyer when Marks : 1.0
Id: 45441
the
1) goods are shipped 2) goods are received by the buyer 3) contractis entered into

4) price is paid

Explanation:

Q25) Promises which form the consideration or part thereof, for each other under section
2(F) are called
1) acceptances for different proposals 2) agreements

Marks : 1.0
3) reciprocal promises 4) consideration Id: 45302
Explanation:
Q26) Which of the following terms define the legal principle "Let the buyer beware" ? Marks : 1.0
Id: 45557

1) Buyer’s liability 2) Caveat emptor

3) Indemnity 4) Bailment
Explanation:

Q27) Under section 2(11) of the Sale of Goods Act, 1930, the property in goods means Marks : 1.0
Id: 45429

1) the general property or ownership of goods 2) the specific property or ownership of goods

3) both (a) and (b) 4) either (a) or (b).

Explanation:
Q28) A guarantee may be given for an existing debt or obligation is Marks : 1.0
Id: 45505

1) prospective guarantee 2) continuing guarantee

3) specific guarantee 4) retrospective guarantee

Explanation:

Marks : 1.0
Q29) Goods' within the meaning of section 2(7) of the Sale of Goods Act, 1930 includes Id: 45417
1) actionable claim(s) 2) money

3) both (a) and (b) 4) neither (a) nor (b).

Explanation:
Q30) Section 2(7) of the Sale of Goods Act, 1930, the term 'goods' does not include Marks : 1.0
Id: 45418

1) stock and share 2) growing crops

3) grass 4) neither (a) nor (b) nor (c)

Explanation:
Q31) The surety has a right to recover from the principal debtor the amounts which he has
Marks : 1.0 rightfully paid under the contract of guarantee. This right of surety
against debtor is Id: 45502 called…
1) Right of subrogation 2) Right to be indemnified

3) Right of contribution 4) Both a & b

Explanation:

Q32) In case of joint promise, generally the performance must be by Marks : 1.0
Id: 45378
1) all the promisors jointly 2) any one of them individually

3) one not authorised to perform 4) none of the above

Explanation:
Q33) In a sale , there is an implied condition on the part of the seller that he Marks : 1.0
Id: 45408

1) has a right to sell the goods 2) is in possession of the goods 3) will have the

rights to sell 4) will acquire the goods

Explanation:

Marks : 1.0
Q34) Section 8 of the Sale of Goods Act, 1930 is not applicable to Id: 45474
1) generic goods 2) specific goods
3) unascertained goods which form a part of a 4) none of the above specific
subject-matter

Explanation:
 Q35) Under section 2(4) of the Sale of Goods Act, 1930, which of the following documents
Marks : 1.0 is not a document of title Id: 45411

1) pucca delivery order enabling a person to 2) mate's receipt obtain

delivery on payment of price
3) both (a) and (b)

4) neither (a) nor (b).

Explanation:
Q36) The definition of 'the documents of title to goods' given in section 2(4) of the Sale of Marks : 1.0
Goods Act, 1930, is Id: 45409

1) exhaustive 2) descriptive

3) exhaustive and descriptive 4) only (a) and not (b) or (c).

Explanation:

Q37) A contract based on the happening or non- happening of a future event under Marks : 1.0 contract act is called Id: 45522

1) a contingent contract 2) a wagering contract

3) a contract marked with uncertainty and hence 4) none of the above
void

Explanation:
Q38) The maxim 'Ignoranlia juris non excusa' stands for Marks : 1.0
Id: 45499
1) law will not punish ignorant people. 2) law will punish illiterate people.

3) ignorant people can excuse law. 4) ignorance of law of land is no excuse.

Explanation:

Marks : 1.0
Q39) Offer as defined under section 2(a) is Id: 45298
1) communication from one person to another 2) suggestion by one person to another
3) willingness to do or abstain from doing an act 4) none of the above
in order to obtain the assent of other thereto

Explanation:
Q40) The definition of 'goods' under section 2(7) of the Sale of Goods Act, 1930 is Marks : 1.0
Id: 45416

1) descriptive 2) exhaustive

3) exhaustive and descriptive 4) declaratory

Explanation:
Q41) A person is deemed to be in a position to dominate the will of another if Marks : 1.0
Id: 45514
1) he holds a real or apparent authority over the 2) he stands in a fudiciary relation to the other.
other.
3) all of the above.

4) none of the above.

Explanation:

Marks : 1.0
Q42) The Sale of Goods Act, 1930 is based on Id: 45395
1) theenglish Bills of Exchange Act, 1882 2) the Transfer of Property Act, 1882
3) (c) the English Sale of Goods Act, 1893 4) the Indian Contract Act, 1872.
Explanation:
Q43) An agreement not enforceable by law is said to be – Marks : 1.0
Id: 45343

1) Void 2) Voidable

3) Valid 4) Unenforceable

Explanation:

Q44) Where there is an unconditional contract for the sale of specific goods in a Marks : 1.0 deliverable state, the property in the goods
passes to buyer when Id: 45430

1) Goods are delivered to the buyer 2) price is paid by the buyer

3) contract is made 4) buyer accepts the goods

Explanation:
Q45) Where both the parties are under mistake as to matter of fact, the contract under Marks : 1.0 section 20 is Id: 45331

1) voidable 2) void

3) valid 4) illegal

Explanation:

Q46) Tender is Marks : 1.0

Id: 45310

1) an offer 2) an invitation to offer

3) a counter offer 4) a promise

Explanation:
Q47) A contingent contract Marks : 1.0
Id: 45368

1) is void 2) never becomes void

3) becomes void when the event becomes 4) is voidable impossible

Explanation:
Q48) A proposal when accepted becomes Marks : 1.0
Id: 45300

1) promise under section 2(b) 2) agreement under section 2(e)

3) contract under section 2(h) 4) none of the above

Explanation:

Q49) An agreement not to raise the plea of limitation is Marks : 1.0

Id: 45325
1) valid& binding 2) void

3) voidable 4) illegal
Explanation:
Q50) "Mercantile agent" means the person Marks : 1.0
Id: 45425
1)who sell goods, or consigns for the purpose of 2) who only sell or purchase sell, or buy goods or raise
money on security of goods
3) who only consign goods

4) who only transfer goods

Explanation:

Q51) Which of the following circumstances will not cause the agency relationship to Marks : 1.0
Id: 45503
terminate?
1) The death of the principal. 2) The death of the agent.
3) The bankruptcy of the principal. 4) The bankruptcy of the agent

Explanation:

Marks : 1.0
Q52) The lien of unpaid seller depends on Id: 45468
1) possession 2) title

3) ownership 4) whether the buyer has paid the price or not

Explanation:
Q53) Future goods' has been defined, in the Sale of Goods Act, 1930, under Marks : 1.0
Id: 45554
1) section 2(5) 2) section 2(6)

3) section 2(7) 4) section 2(8).

Explanation:
Q54) In an agreement to sell, the seller can sue for price if Marks : 1.0
Id: 45423

1) the goods have been delivered to the buyer 2) the goods have been delivered to the buyer

3) there is a specific agreement 4) None of the above

Explanation:

Marks : 1.0
Q55) Which is correct Id: 45305
1) proposal + acceptance = promise 2) promise + consideration = agreement

3) agreement + enforceability = contract 4) all the above

Explanation:
Q56) Parties are not competent to contract if any of them is Marks : 1.0
Id: 45338

1) minor 2) insane

3) declared unqualified 4) all the above

Explanation:

Q57) Under section 2(6) of the Sale of Goods Act, 1930 'future goods' means

1) goods which are not yet in existence 2) unascertained goods

Marks : 1.0
3) ascertained goods 4) specific goods Id: 45413
Explanation:
Q58) Revocation of offer by letter or telegram can be complete Marks : 1.0
Id: 45314

1) when it is despatched 2) when it is received by the offeree 3) when it reaches the

offeree 4) both (a) and (c)

Explanation:

Q59) Every contract is an agreement but every agreement is not a contract. This statement
is-
1) Wrong 2) Correct

Marks : 1.0
3) Correct subject to certain exceptions 4) Partially correct Id: 45516
Explanation:
Q60) Where under an agreement, the buyer has a right to return the goods at any time and Marks : 1.0 thereby himself from any further
obligation as regards payment is a contract of Id: 45443
1) sale 2) bailment

3) hiring 4) agency

Explanation:

Q61) What is meant by executory consideration? Marks : 1.0

Id: 45532

1) Consideration which is in the past. 2) Where there is a promise to do something in

the future.

3) Where consideration has already been 4) The exchange of consideration.

completed.

Explanation:
Q62) an agreement which is enforceable by law at the option of one or more of the parties Marks : 1.0 thereto, but not at option of the other or
others, is a – Id: 45536
1) Void agreement 2) Voidable contract

3) Unlawful contract 4) Void contract

Explanation:
Q63) When the consent to an agreement is obtained by undue influence, the agreement is Marks : 1.0
voidable _x000D_ at the option of Id: 45540

1) either of the parties to the agreement 2) a party whose consent is soobtained

3) a party who obtained the consent 4) both the parties

Explanation:

Q64) Mr. X owns a residential flat in Pune. He is entitled to quite possession and Marks : 1.0 enjoyment of his property. This is called-
Id: 45500
1) Rights in personam 2) Rights in Rem..

3) Constitutional Right 4) There is no right at all.

Explanation:

Q65) When a person signifies to another his willingness to do or to abstain from doing Marks : 1.0
anything, with a view to obtaining the assent of that other to such act or abstinence, Id: 45352
he is said to –
1) enter into a contract 2) make a proposal

3) accept an offer 4) create legal obligation

Explanation:
Q66) A proposal may consist of a promise for Marks : 1.0
Id: 45538

1) Doing an act 2) Abstaining from doing an act

3) Either (a) or (b) 4) Returning the consideration

Explanation:

Q67) A contract which becomes unenforceable subsequently is a

1) void contract 2) valid contract

Marks : 1.0
3) enforceable contract 4) void agreement Id: 45574
Explanation:
Q68) Promises which form the consideration or part of the consideration for each other Marks : 1.0
Id: 45295
are called
1) reciprocal promises 2) cross offers

3) conditional offer 4) conditional promises

Explanation:

Marks : 1.0
Q69) Which of the following is the recognized exception to the rule of privity of contract? Id: 45498
1) trust or charge. 2) marriage settlement and family arrangements.
3) acknowledgement of payment. 4) all of the above

Explanation:
Q70) A contract which ceases to be enforceable by law becomes void

1) when it ceases to be enforceable 2) before it ceases to be enforceable

Marks : 1.0
3) no such condition necessary 4) none of above Id: 45317
Explanation:
Q71) The right of subrogation in a contract of guarantee is available to the Marks : 1.0
Id: 45493

1) creditor 2) principal debtor

3) surety 4) indemnifier

Explanation:

Q72) In case of death of a joint promisor(s), the promisee Marks : 1.0

 Id: 45492

1) can enforce the contract against the 2) cannot enforce the contract against the survivor(s) of the
said joint promisor(s) survivor(s) of the said joint promisor(s) alongwith the joint promisors who are
alive

3) both (a) & (b)

4) cannot enforce the contract against any of

them

Explanation:
Q73) Section 7 of the Sale of Goods Act, 1930 makes contract of sale Marks : 1.0
Id: 45469

1) voidable at the instance of the buyer 2) voidable at the instance of the seller

3) void 4) neither (a) nor (b) nor (c)

Explanation:
Q74) Where the price of the goods under a contract of sale has to be determined by the
valuation of a third party, and the valuer fails or refuses to make the valuation, the Marks : 1.0
contract under section 10 of the Sale of Goods Act, 1930, shall Id: 45486
1) become void 2) be voidable
3) remain valid 4) become impossible

Explanation:

Q75) The term "goods" in the sale of goods means Marks : 1.0
Id: 45547
1) specific goods only 2) ascertained goods only

3) ownership 4) subject matter.

Explanation:
Q76) Generally, the joint promisors can Marks : 1.0
Id: 45380 1)
compel each other to contribute equally 2) not to compel each other to contribute equally

3) cannot compel each other to contribute 4) none of the above

Explanation:

Q77) Where the price of the goods under a contract of sale is to be fixed by the valuation
of a third party who fails to fix the valuation, but goods are supplied to the buyer, Marks : 1.0
under section 10 of the Sale of Goods Act, 1930 the buyer is Id: 45487
1) liable to pay the reasonable price of the goods 2) liable to pay the minimum price of the goods

3) not liable to pay any price until fixed by the 4) liable to pay the maximum retail price valuer

Explanation:
Q78) A contract creates – Marks : 1.0
Id: 45340

1) Rights in personam 2) Rights in rem

3) Only rights & no obligations 4) Only obligations & no rights

Explanation:

Q79) Contract discharge by mutual agreement may involve Marks : 1.0

Id: 45566

1) Novation 2) Rescission

3) Alteration 4) All the above

Explanation:
Q80) Where the neglect or refusal of the buyer, to take delivery of goods amounts to a Marks : 1.0 repudiationof the contract, the seller
may sue for the Id: 45466

1) price or damages 2) price only

3) damages only 4) both for price & damages

Explanation:

Q81) Which of the following documents is a document of title to 'goods' within the Marks : 1.0 meaning of section 2(4) of the Sale of Goods
Act, 1930 Id: 45553
1) Warehouse keeper's certificate Q82) Law of contract primarily

1) specifies the circumstances in which promises are

3) both (a) and (b) binding on the parties to the contract

Explanation:
3) lays down the circumstances under which a
promise may be made

Explanation:
2) Wharfinger's Marks : 1.0
Id: 45355

2) lays down certain norms by which the parties

certificate 4) neither
are bound

(a) nor (b).

4) all the above

Q83) In case of breach of warranty, the buyer can Marks : 1.0

Id: 45414

1) claim damages only 2) repudiate the contract

3) cannot return the goods 4) refuse to take delievery of goods

Explanation:

Q84) A letter of acceptance sent by post is lost in transit Marks : 1.0

Id: 45326
1) there is a concluded contract as the letter of 2) there is no concluded contract as the
acceptance is put in the course of acceptance has not come to the knowledge of
transmission the proposer

3) there is no concluded contract as the 4) all the above

acceptance has not been communicated to the proposer

Explanation:
Q85) Price lists and catalogues, advertisements in newspapers are Marks : 1.0
Id: 45527

1) offers. 2) invitations to offer.

3) acceptances. 4) cross-offers.

Explanation:
Q86) Acceptance to be valid must Marks : 1.0
Id: 45315

1) be absolute 2) be unqualified

3) both be absolute & unqualified 4) be conditional

Explanation:

Q87) When the consent is caused by undue influence, the contract under section 19A is Marks : 1.0
Id: 45330

1) valid 2) void
3) voidable 4) illegal

Explanation:

Q88) The word "Property" in the Sale of Goods Act, 1930 means Marks : 1.0
Id: 45428

1) seller or transferer 2) buyer or purchaser

3) goods or subject matter 4) ownership or title

Explanation:

Q89) Every promise or set of promises forming the consideration for each other under
section 2(e) is called
1) reciprocal promise 2) contract

Marks : 1.0
3) agreement 4) none of the above Id: 45303
Explanation:
Q90) Contractual rights and duties are created by- Marks : 1.0
Id: 45534

1) State 2) Statute

3) Parties 4) Custom or Usage

Explanation:

Q91) If a sell is by sample as well as by description, implied condition is that the goods Marks : 1.0 shall correspond with Id: 45405
1) sample 2) description

3) both sample & description 4) either sample & description.

Explanation:
Q92) Where under a contract of sale, a condition provides for the defeasance of a certain
right on the happening of a specified event, such a condition is a
1) condition concurrent 2) condition subsequent

Marks : 1.0
3) condition precedent 4) either (a) or (c) Id: 45449
Explanation:
Q93) A contract is – Marks : 1.0
Id: 45346

1) A legal obligation 2) An agreement plus a legal obligation

3) Consensus ad idem 4) An agreement plus a legal object

Explanation:

Q94) A contract of sale under section 4 of the Sale of Goods Act, 1930 Marks : 1.0
Id: 45440
1) may be absolute 2) may be conditional

3) either (a) or (b) 4) only (a) and not (b)

Explanation:
Q95) When the unpaid seller has parted with the goods to a carrier and the buyer has Marks : 1.0 become_x000D_ insolvent he can
exercise ------------------ Id: 45544
1) right of lien. 2) right of stoppage in transit.

3) right of resale. 4) none of the above.

Explanation:

Q96) A contract based on the happening or non- happening of a future event under section Marks : 1.0
31 is called Id: 45366

1) a contingent contract 2) a wagering contract

3) a contract marked with uncertainty and hence 4) none of the above

void

Explanation:
Q97) A promisor can perform Marks : 1.0
Id: 45376

1) the promise himself 2) the promise through his representative

competent to perform

4) both (a) & (b)

3) the promise through his representative
irrespective of the competency of that
representative
Explanation:
Q98) Acceptance of delivery of goods is deemed to take place when the buyer -------------- Marks : 1.0
1) intimates to the seller that he had accepted Explanation:
Id: 38809
the goods.
2) does any act to the goods, which is
inconsistent with the ownership of the seller.
3) rejects and retains the goods after the lapse of
a reasonable time, without intimating the
seller. 4) any of the above.

Q99) A contract of sale of goods under section 5 of the Sale of Goods Act, 1930 may Marks : 1.0 provide for Id: 45459
1) immediate payment and immediate delivery 2) delivery of goods and payment by instalments

3) either (a) or (b) 4) only (a) and not (b)

Explanation:
Q100) An unpaid seller can exercise the right of stoppage in transit, when the carrier holds Marks : 1.0
the goods Id: 45478

1) as seller’s agent 2) as buyer’s agent

3) as agent of both of them 4) in his own name

Explanation:
Q101) On attaining the age of majority, a minor's agreement Marks : 1.0
Id: 45528

1) is void. 2) cannot be ratified.

3) becomes void. 4) can be ratified.

Explanation:

Q102) Contract becomes voidable when consent is obtained by Marks : 1.0

Id: 45560

1) coercion 2) undue influence

3) misrepresentation 4) all of these

Explanation:
Q103) Doctrine of Caveat Emptor means ------------ Marks : 1.0
Id: 38808

1) let the seller beware. 2) let the buyer beware.

3) let the creditor beware. 4) none of the above.

Explanation:

Q104) Delivery of goods may be________ Marks : 1.0

Id: 45550

1) actual 2) symbolic

3) constructive 4) all of these

Explanation:
Q105) In a conditional contract of sale of goods under section 4 of the Sale of Goods Act, Marks : 1.0
1930, the conditions Id: 45446

1) has to be contingent 2) has to be promissory

3) may be either contingent or promissory 4) only promissory and not contingent

Explanation:

Q106) Which of the following documents is a document of title to goods Marks : 1.0
Id: 45410

1) bill of exchange 2) promissory note

3) dock warrant 4) all the above

Explanation:
Q107) A contract, performance of which becomes impossible or unlawful becomes Marks : 1.0
Id: 45392
1)void when the performance becomes unlawful 2) void or impossible 3) voidable when the performance
becomes impossible

4) neither becomes void nor voidable

Explanation:
Q108) The term ‘property’ as used in the Sale of Goods Act, 1930 means ______ Marks : 1.0
Id: 45551

1) possession 2) ownership

3) ownership and possession both 4) the subject matter of contract of sale.

Explanation:

Q109) Communication of a proposal is complete when it comes to the knowledge of the Marks : 1.0 person to whom it is made Id: 45349

1) TRUE 2) Partly true

3) FALSE 4) None of the above

Explanation:

Q110) In a sale, the property in goods, Marks : 1.0

Id: 45398

1) is transferred to the buyer 2) Yet to be transferred to the buyer

3) transferred when goods are delievered 4) transferred when price is paid.

Explanation:

Q111) X purchased goods on behalf of Y by paying from his own pocket for the time being. Marks : 1.0
 X is about to deliver goods to Y his principal and came to know that Y became Id: 45559
insolvent. In this case X as an agent is entitled to imply which right?
1) Right of indemnification 2) Right of stoppage in transit

3) Right of retainer 4) Right to remuneration

Explanation:

Marks : 1.0
Q112) If the proposer prescribes the mode & manner of acceptance, the acceptance Id: 45337
1) can be in any manner & mode 2) should be in the manner & mode prescribed 3) can be in

any reasonable mode & manner 4) all the above

Explanation:
Q113) A appoints B as his agent, by way of a power of attorney. This is an example of Marks : 1.0
Id: 45537

1) Express contract. 2) Implied contract.

3) Tacit contract. 4) Unlawful contract.

Explanation:

Q114) A contract creates Marks : 1.0

Id: 45526

1) rights and obligations of the parties to it. 2) obligations of the parties to it.

3) mutual understanding between the parties to 4) mutual lawful rights and obligations of the
it. parties to it.

Explanation:
 Marks : 1.0
Q115) The Contract Act came into force Id: 45506
1) from 1 september 1972 2) before 1 september 1882

3) from 1 september 1872 4) after 1 september 1872

Explanation:
Q116) A contingent contract based on the specified uncertain event not happening within a Marks : 1.0 fixed time under section 35
Id: 45375

1) can be enforced if the event does not happen 2) can be enforced if before the expiry of time
within the time fixed fixed, it becomes certain that such an event
shall not happen

3) cannot be enforced at all, being void 4) both (a) & (b)

Explanation:
Q117) In case the promisee prescribes the manner and time of performance of promise Marks : 1.0
Id: 45387

1) the performance must be in the manner and at 2) the performance can be in a different manner
the time prescribed but at the time prescribed

3) the performance can be in the manner 4) the performance need not be in the manner prescribed but
at a time beyond the time and time prescribed

prescribed

Explanation:

Q118) Where a contract consists of reciprocal promises and such reciprocal promises are Marks : 1.0 to be simultaneously performed -
Id: 45350

1) Promisor need not perform his part of promise 2) Promisor need not perform his part of promise
at all unless Promisee is ready and willing to
perform his reciprocal promise

3) Promisor has to compel Promisee to perform 4) There is no valid contract at all.

 his promise first

Explanation:
Q119) When the consent is caused by misrepresentation, the contract under section 19 is Marks : 1.0
Id: 45329

1) valid 2) void

3) voidable 4) illegal

Explanation:

Q120) If a seller makes use of pretended bidding at an auction, to raise the price, the sale is Marks : 1.0 Id: 45491

1) voidable at the option of the buyer 2) void

3) valid 4) Illegal

Explanation:
Q121) Price' under section 2(10) of the Sale of Goods Act, 1930, means Marks : 1.0
Id: 45426
1) the money consideration 2) the consideration given in the form of goods

3) partly money consideration and pa; 4) either (a) or (b) or (c).

consideration in goods

Explanation:

Marks : 1.0
Q122) Contract of Sale under section 4 of the Sale of Goods Act, 1930 comprises of Id: 45436
1) executory contract of sale 2) executed contract of sale
3) bothexecutory and executed contracts of sale 4) only (a) and not (b)

Explanation:
Q123) A 'sale of goods' under the Sale of Goods Act, 1930, creates Marks : 1.0
Id: 45444

1) a jus in rem 2) a jus in personam

3) both (a) and (b) 4) either (a) or (b) depending on the facts &
circumstances of the case

Explanation:

Q124) Marks : 1.0

The term consensus ad-idem means
Id: 45360
1) general consensus 2) reaching an agreement

3) meeting of minds upon the same thing in the 4) all the above
same sense
Explanation:
Q125) Whether a given contract is one of sale or some other kind of contract, in respect of Marks : 1.0 goods, it is a question of Id: 45439

1) form 2) substance

3) terminology 4) both form and substance

Explanation:

Q126) Mercantile agent means the person Marks : 1.0

Id: 45572

1) who sell goods, or consigns for the purpose of 2) who only sell or purchase
sell, or buy goods or raise money on security
of goods
3) who only consign goods

4) who only transfer goods

Explanation:

Marks : 1.0
Q127) Enforceable agreements are the one Id: 45321
1) made by free consent 2) parties to the contract are competent to enter
into an agreement
3) having lawful consideration & lawful object 4) all the above

Explanation:

Q128) A person is said to be 'insolvent' who has ceased to pay his debts in the ordinary Marks : 1.0
Id: 45421
course of business, or cannot pay his debts as they become due whether he has
committed an act of insolvency or not', is the definition of insolvency given in
1) The Indian Partnership Act, 1932 2) The Sale of Goods Act, 1930

3) The Indian Contract Act, 1872 4) all the above

Explanation:
Q129) The term “goods” under Sale of Goods Act, 1930 does not include Marks : 1.0
Id: 38806

1) goodwill. 2) actionable claims

3) stocks and shares 4) harvested crops

Explanation:

Marks : 1.0
Q130) Where a letter of the acceptance sent by post is lost in transit there is Id: 45496
1) no contract as the acceptance has not come to 2) is no contract as the acceptance has not been
the knowledge of the offerer. communicated to the offerer.

3) a contract as the letter of acceptance is put in 4) no contract as the acceptance is not in

the course of transmission. position to accept the offer

Explanation:
Q131) A's son forged B's name to a promissory note. B under threat of prosecuting A's son Marks : 1.0 obtains a bond from A for the
amount of the forged note. If B sues on this bond the Id: 45328 court
1) has no jurisdiction in this case 2) must not set aside the bond
3) may set aside the bond 4) none of above
Explanation:

Q132) when it comes to the knowledge of the proposer Marks : 1.0

Id: 45313

1)when it comes to the knowledge of the 2) when it is put in the course of transmission proposer 3)
when it is communicated to the acceptor that the acceptance has reached the proposer

4) when the proposer conveys the acceptance to

the acceptor

Explanation:
Q133) Goods displayed in a shop with a price tag is an Marks : 1.0
Id: 45309
1) offer 2) invitation to offer

3) counter offer 4) none of the above

Explanation:
Q134) In a valid contract, what comes first Marks : 1.0
Id: 45306

1) enforceability 2) acceptance

3) promise 4) proposal
Explanation:

Q135) Transfer of actionable claim(s) is governed by Marks : 1.0

Id: 45420

1) The Transfer of Property Act, 1882 2) The Sale of Goods Act, 1930

3) The Indian Contract Act, 1872 4) all the above

Explanation:
Q136) Free consent is said to be free when it is not caused by Marks : 1.0
Id: 45565

1) Coercion 2) Undue influence

3) fraud 4) All the above

Explanation:
Q137) The relationship of principal and agent may be created by Marks : 1.0
Id: 45520

1) Express agreement 2) Implied agreement

3) both a & b 4) none of these

Explanation:

Q138) A contract – Marks : 1.0

Id: 45344

1) May be void as originally entered into. 2) May become void subsequent to its formation
3) Cannot become void under any circumstances 4) May become void at the will of a party

Explanation:
Q139) Under section 7 of the Sale of Goods Act, 1930, a contract for sale of specific goods Marks : 1.0 is void Id: 45470

1) where the goods have perished/dam¬aged 2) where the goods have perished/ damaged to without
knowledge of the seller the knowledge of the seller

3) where the goods have perished/ damaged, 4) where the goods have perished/dam¬aged to
irrespective of without or to the knowledge of the knowledge of the buyer the seller

Explanation:

Q140) An unpaid seller has not given notice of resale to the buyer. On resale there is a loss Marks : 1.0 Id: 45484

1) the unpaid seller can recover it from the buyer 2) the unpaid seller cannot recover it from the

buyer

3) the buyer can recover it from the unpaid seller 4) the buyer must compensate the unpaid seller
Explanation:

Q141) The term 'delivery' has been defined, in the Sale of Goods Act, 1930 under Marks : 1.0
Id: 45548
1) section 2(3) 2) section 2(2)

3) section 2(1) 4) section 2(4).

Explanation:
Q142) Where no price is fixed in a contract of sale of goods, under section 9 of the Sale of Marks : 1.0
Goods Act, 1930 Id: 45479
the buyer shall pay the maximum price the buyer shall pay the lowest price

the buyer shall pay a reasonable price the buyer shall pay the price as demanded by
the seller

Explanation:
Q143) A contract of present sale of future goods, under section 6(3) of the Sale of Goods Marks : 1.0
Act, 1930, operates as a Id: 45464

1) contract of sale 2) agreement to sell

3) either (a) or (b) depending on the terms of the 4) estoppel or quasi contract of sale
contract

Explanation:
Q144) A contract without consideration under section 25 is Marks : 1.0
Id: 45335

1) valid 2) voidable

3) void 4) illegal

Explanation:

Q145) Communication of a proposal is complete when it comes to the knowledge of the Marks : 1.0 person to _x000D_ whom it is made.
Id: 45543

1) TRUE 2) Partly True

3) FALSE Explanation: 4) None of the above.

Marks : 1.0
Q146) No contract can arise, if the - Id: 45542
1) offer is not made to an ascertained person 2) acceptance is made by an unascertained
person

3) offer is made to an ascertained person 4) acceptance is made by an ascertained person.

Explanation:
Q147) The Fixed Deposit Receipts (FDRs) are goods within the meaning of section 176 of Marks : 1.0 the Indian Contract Act, 1872 and
section 2(7) of the Sale of Goods Act, 1930. The Id: 45437 statement is
1) FALSE 2) ambigous

3) partly true 4) TRUE

Explanation:
Q148) In which of the ways can a contract be discharged by operation of law? Marks : 1.0
Id: 45354

1) Death of Promisor 2) Insolvency of Promisor

3) Merger of Rights 4) All of the above

Explanation:

Q149) The transactions collateral to an illegal agreement are- Marks : 1.0

Id: 45345

1) Not affected in any manner 2) Also tainted with illegality

3) Voidable at the option of the plaintiff 4) Void

Explanation:

Marks : 1.0
Q150) Agreement without consideration is valid Id: 45365
1) when made out of love & affection due to near 2) when made to compensate a person who has
relationship already done something voluntarily
3) when made to pay a time barred debt 4) all the above

Explanation:

Q151) Communication of acceptance is complete as against the proposer Marks : 1.0

Id: 45312

1) when it comes to the knowledge of the 2) when it is put in the course of transmission to proposer
him so as to be out of power of the acceptor

3) when the acceptance is communicated to the 4) all the above

proposer

Explanation:
Q152) Inadequacy of consideration does not make the contract Marks : 1.0
Id: 45363

1) void 2) voidable
3) unenforceable 4) neither void nor voidable

Explanation:

Q153) A bill of lading is Marks : 1.0

Id: 45407

1) a negotiable instrument like a bill of exchange 2) a negotiable instrument like a promissory note

3) either (a) or (b) 4) neither (a) nor (b)

Explanation:
Q154) The term 'goods' has been defined in the Sale of Goods Act, 1930, under Marks : 1.0
Id: 45555
1) section 2(5) 2) section 2(6)

3) section 2(7) 4) section (8).

Explanation:
Q155) In case of default by joint promisors the promisee Marks : 1.0
Id: 45382

1) can sue any one of them for the entire promise 2) can sue any one of them to the extent of his
share in the joint promise

3) both (a) & (b) 4) cannot sue any single promisee

Explanation:

Q156) A contingent contract to do or not to do anything on the happening of an uncertain Marks : 1.0
future event under section 32 Id: 45367
1) is never enforceable 2) becomes enforceable only on the happening of
that event

3) enforceable since the time of making it 4) becomes enforceable in the immediate

possibility of happening of that event

Explanation:
Q157) The documents of title to goods' in the Sale of Goods Act, 1930 have been described, Marks : 1.0 under Id: 45552

1) section 2(4) 2) section 2(4) 3) section 2(1) 4) section (2).

Explanation:

Q158) A contingent contract based on the specified uncertain event happening within a Marks : 1.0 fixed time under section 35 Id: 45374

1) remains valid even if the event does not 2) becomes void at the expiration of the time happen
within that fixed time fixed

3) becomes void if the happening of that event 4) both (b) &

(c) becomes impossible before the expiry of time fixed

Explanation:
Q159) Right of line exercise under sale of goods act under the following cases Marks : 1.0
1) where goods have been sold without
any
Id: 45570

2) where the goods have been sold on credit but

stipulation to credit 3) where the buyer becomes insolvent
Explanation: 4) all the above
the term of credit has
expired

Q160) Where the goods are not specific and ascertained at the time of the making of the Marks : 1.0 contract, the contract can be Id: 45452

1) contract of sale 2) agreement to sell

3) either (a) or (b) 4) neither (a) nor (b)

Explanation:

Q161) The Sale of Goods Act, 1930 in its operationis Marks : 1.0
Id: 45396

1) prospective 2) retrospective

3) prospective in certain respects and 4) only (c) and not (a) or (b).
 retrospective in certain other respects

Explanation:

Q162) The distinction between sale and agreements to sell determines Marks : 1.0
Id: 45447

1) rights and liabilities of the parties to contract 2) nature of goods in the contract

3) nature of property in the contract 4) price of the contract

Explanation:
 Marks : 1.0
Q163) A contingent agreement based on an impossible event under section 36 Id: 45369

1) is void 2) is void till the impossibility is known

3) becomes void on the knowledge of 4) all the above impossibility

Explanation:

Q164) Contracts with pardanashin woman raises the presumption of Marks : 1.0
Id: 45515

1) domination of will. 2) undue influence.

3) farud. 4) none of the above.

Explanation:
Q165) Delivery of the key of a warehouse where goods are lying amounts to

1) symbolic delivery 2) actual delivery

Marks : 1.0
3) constructive delivery 4) none of these Id: 45571
Explanation:

Q166) Under the Sale of Goods Act 1930 existing goods are classified under Marks : 1.0
Id: 45567
1) specific goods 2) ascertained goods

3) Unascertained goods 4) All the above

Explanation:
Q167) Where one of the parties is under a mistake as to matter of fact the contract is Marks : 1.0
Id: 45332

1) valid 2) void

3) voidable 4) illegal

Explanation:

Q168) In a conditional contract of sale of goods, a condition inserted for the benefit of one Marks : 1.0 party is waived by that party, and that
party Id: 45451
1) cannot insist upon that condition in future 2) can insist upon that condition in future as
a matter of right

4) only (a) and not (b) or (c).

3) can insist upon that condition in future only if
that party gives a reasonable notice of such
intention to the of party
Explanation:
Q169) Which one of the following is correct Marks : 1.0
Id: 45323

1) past consideration is no consideration 2) consideration can be past, present or future

3) consideration can only be present 4) consideration can only be present & future
Explanation:

Q170) In a contract not specifying the time for performance, the promisor can perform the Marks : 1.0 contract Id: 45384

1) within any time howsoever long it may be 2) within the shortest time

3) within a reasonable time 4) none of the above

Explanation:
Q171) The court stated that the advertisement in Carlill v Carbolic Smoke Ball Co. was Marks : 1.0
Id: 45529
which of the following?
1) An invitation to treat 2) An offer.

3) A statement of intention. 4) Of no legal effect whatsoever

Explanation:

Marks : 1.0
Q172) If a contract is silent about who is to appropriate the goods Id: 45432
1) the buyer is to appropriate 2) seller is to appropriate

3) party who is under contract to act first, has to 4) any party may appropriate
appropriate

Explanation:
Q173) Where a third party is prevented from making the valuation of goods, as price to be Marks : 1.0
Id: 45488
paid by the buyer to the seller, by a party to the agreement, under section 10 of the
Sale of Goods Act, 1930, the other party has a right to
1) sue for specific performance 2) sue for damages

3) both (a) and (b) 4) either (a) or (b)

Explanation:
Q174) An agreement not enforceable by law is stated to be void under Marks : 1.0
Id: 45296

1) section 2(d) 2) section 2(e)

3) section 2(f) 4) section 2(g).

Explanation:

Q175) Which one of the following does not amount to fraud Marks : 1.0
Id: 45361
1) suggestion as a fact which is not true, by one 2) active concealment of a fact who does not believe it
to be true 3) a representation made without knowing it to be false, honestly believing it to be true
4) a promise made without any intention of
performing it

Explanation:

Q176) Under section 6 of the Sale of Goods Act, 1930, the subject-matter of a contract of Marks : 1.0 sale of goods, can be Id: 45462

1) the existing goods owned and possessed by 2) the future goods which are yet to be produced the
seller
3) either existing or future goods

4) only existing goods & not future goods

Explanation:
Q177) If A renders some service to B at B's desire, and after a month B promises to Marks : 1.0
Id: 45512
compensate A for the service rendered to him, it is a
1) present consideration. 2) past consideration

3) future consideration. 4) not a consideration at all.

Explanation:

Marks : 1.0
Q178) Unless otherwise agreed, where goods are delivered to the buyer & he rejects them Id: 45461
1) he is not bound to return them to seller 2) it is sufficient if he intimates to the seller
that he has rejected the goods

3) he is bound to deliver them to the seller 4) he may keep them with him
Explanation:
Q179) The term 'buyer', under the Sale of Goods Act, 1930, has Marks : 1.0
Id: 45546

1) been defined under section 2(1) 2) been defined under section 2(2) 3) been defined

under section 2(3) 4) not been defined.

Explanation:

Marks : 1.0
Q180) Under section 8 of the Sale of Goods Act, 1930, the contract becomes Id: 45475
1) voidab initio 2) avoided from the date of perishing of goods
3) avoided from the date of knowledge of goods 4) only (a) and not (b) or (c)
having been perished

Explanation:
Q181) In contract for sale of immovable property the presumption is that the time is Marks : 1.0
Id: 45390

1) the essence of the contract 2) not the essence of the contract

3) the essence of the contract but failure does 4) not the essence of the contract but makes the not
make the contract voidable contract voidable at the instance of the other party

Explanation:
Q182) A proposal stands revoked Marks : 1.0
Id: 45319
1) by communication of notice of revocation by 2) by failure of acceptor to fulfil a condition the
proposer precedent

3) by death or insanity of proposer to the 4) all the above knowledge of

acceptor

Explanation:

Q183) A condition is a stipulation which is ________ Marks : 1.0

Id: 45521
1) Not essential to the main purpose of contract 2) essential to the main purpose of contract of
of sale the sale

3) collateral to the main purpose of contract of 4) None of the above.

sale

Explanation:

Q184) A contract for sale of goods to be delivered at a future date shall Marks : 1.0
1) be invalid if the seller has not the goods in Id: 45463
present possession 2) be invalid if the seller has not contracted for
the purchase of those goods
3) be invalid if the seller only expects or hopes
to acquire 4) not be invalid if the seller has not got the
goods in present possession nor has
contracted for the purchase of the same nor
has any expectation of getting them
Explanation:

Q185) A contract is- Marks : 1.0

 Id: 45517

1) An agreement enforceable by third parties 2) An agreement by competent people 3)

An agreement enforceable by law 4) Not an agreement at all

Explanation:

Q186) Section 9 of the Sale of Goods Act, 1930 provides for fixing the price of goods Marks : 1.0
Id: 45483

1) by the contract itself 2) in the manner agreed upon by the parties

3) in the course of dealing between the parties 4) either (a) or (b) or (c)

Explanation:
Q187) Where there is an anticipatory breach of contract, when is the injured party entitled to Marks : 1.0
sue? Id: 45531
1) Only after a reasonable time. 2) From the date the other party indicates their
intention not to complete the contract.

3) From the date that the other party fails to 4) If it is an anticipatory breach of contract the actually
perform their part of the contract. injured party has no right to sue for beach of contract.

Explanation:

Q188) Which are the exceptions to the Doctrine of Caveat Emptor Marks : 1.0
Id: 45569

1) In case of misrepresentation by the seller 2) In case of sale by discription

3) Marchantable Quality 4) All the above

Explanation:

Q189) A contract is defined as -an agreement creating and defining obligations between the Marks : 1.0
parties by Id: 45523

1) Salmond 2) Halsbury

3) Sir William Anson 4) None of the above

Explanation:

Q190) A seller delivers goods in excess of the quantity ordered for, the buyer may Marks : 1.0
Id: 45465
1) accept the whole 2) reject the whole

3) accept the goods ordered for & return the 4) none of these excess

Explanation:

Q191) Section 8 of the Sale of Goods Act, 1930 deals with cases of Marks : 1.0
1) impossibility of performance of the Explanation:
Id: 45473
contract before the formation of the
contract 2) impossibility of performance of the contract at
the time of formation of the contract
3) impossibility of performance of the
contract subsequent to the formation of the 4) all the above
contract

Q192) In case of death of a joint promisor(s) the promisee Marks : 1.0

Id: 45383
1) can enforce the contract against the 2) cannot enforce the contract against the survivor(s) of the
said joint promisor(s) survivor(s) of the said joint promisor(s) alongwith the joint promisors who are
alive

3) both (a) & (b)

4) cannot enforce the contract against any of

them

Explanation:

Q193) In a contract of sale of goods, under section 4 of the Sale of Goods Act, 1930, there Marks : 1.0
Id: 45438
1) must be transfer of absolute or general 2) must be a transfer of special property in
property in the goods the goods

3) must be transfer of either absolute or special 4) neither (a) nor (b).

property in the goods
Explanation:
Q194) Which of the following is necessary for the formation of the contract of sale of goods Marks : 1.0 under section 5 of the Sale of
Goods Act, 1930 Id: 45456
1) payment 2) delivery

3) both payment and delivery 4) neither payment nor delivery

Explanation:

Q195) Which one of the following is an essential element of a valid contract? Marks : 1.0
Id: 45513

1) Consideration 2) Free consent

3) Competent Parties 4) all of the above

Explanation:

Marks : 1.0
Q196) Delivery' within the meaning of section 2(1) of the Sale of Goods Act, 1930, can be Id: 45404
1) actual 2) constructive

3) symbolic 4) either (a) or (b) or (c).

Explanation:

Q197) An unpaid seller has not given notice of resale to the buyer. On resale there is a Marks : 1.0
profit. The unpaid seller Id: 45490
1) is bound to hand it over to the buyer 2) is not bound to hand it over to the buyer

3) may dispose it off in any manner he likes 4) may set it off against a previous loss in similar
circumstances
Explanation:
Q198) Inadequacy of consideration is relevant in determining the question of Marks : 1.0
Id: 45364

1) fraud 2) misrepresentation

3) undue influence 4) free consent

Explanation:
 Marks : 1.0
Q199) What is true of misrepresentation Id: 45370
1) it is the same thing as fraud 2) it renders the contract voidable

3) it may be due to innocence 4) both (b) & (c)

Explanation:
Q200) Which of the following is true as regards an 'agreement to sell' in respect of goods Marks : 1.0
Id: 45445
1) it is an executed contract which creates a jus 2) it is an executory contract which creates a jus
in rem in personam
3) it is an executed contract which creates a jus 4) it is an executory contract which creates a jus
in personam in rem

Explanation:
 Marks : 1.0
Q201) There is a constructdelivery of goods Id: 45442
1) when the seller hands over to the buyer the 2) Where a third person in possession of the
key of the warehouse where the goods are goods acknowledges to the buyer that he
lying holds them on his behalf

3) When the seller physically delivers goods to 4) when the seller asks the buyer to take
buyer delivery of the goods
Explanation:

Q202) In Sale of Goods Act several provisions of the Indian Contract Act have been retained Marks : 1.0
Id: 45397
1) to meet the need of the buyers 2) to meet the need of the sellers

3) to meet the need of both the buyers and 4) to meet special conditions existing in
sellers India regarding sale of goods
Explanation:
Q203) In an agreement to sell, the property in goods is transferred Marks : 1.0
Id: 45453

1) in future 2) at present

3) either (a) or (b) 4) neither (a) nor (b)

Explanation:

Marks : 1.0
Q204) An agreement enforceable at law is a Id: 45293
1) enforceable acceptance 2) accepted offer

3) approved promise 4) contract

Explanation:
Q205) Competency to contract relates to Marks : 1.0
Id: 45322

1) age of the parties 2) soundness of mind of the parties

3) both age & soundness of mind 4) intelligence of the parties

Explanation:

Q206) Where under a contract of sale of goods, obligations of one party are kept in Marks : 1.0
abeyance till the fulfillment of certain conditions, it is a case of Id: 45448
1) condition precedent 2) condition concurrent
3) condition subsequent 4) either (a) or (b)

Explanation:
Q207) Under section 10 of the Sale of Goods Act, 1930 in cases where under an agreement Marks : 1.0 two valuers, one appointed by each
party, have to function, in such cases, the Id: 45489 valuation by one alone is
1) sufficient 2) futile

3) sufficient with the leave of the court 4) either (b) or (c)

Explanation:

Q208) In case of absence of transfer of title or registration, the purchaser Marks : 1.0
Id: 45467

1) can claim damages for breach of conditions or 2) cannot claim damages for breach of
warrantees conditions and warrantees

3) can claim full price back 4) none of above

Explanation:

Q209) If the time is not the essence of the contract the failure to perform the contract by the Marks : 1.0
specified time makes the contract Id: 45389
1) void 2) voidable at the instance of the promisee
3) remains valid & can be performed at any 4) remains valid & can be performed at any subsequent
time without being liable for the subsequent time without being liable for the loss suffered by the
promisee loss suffered by the promisee

Explanation:

Q210) A general offer open for world at large can be accepted Marks : 1.0
Id: 45359

1) by sending a communication of acceptance 2) by complying with the conditions of offer

3) by tendering himself to comply the conditions 4) none of the above

of offer

Explanation:

Q211) When is revocation of an offer effective? Marks : 1.0

Id: 45530 1)
When it is put in the post by the offeree 2) When it is received by the offer or his agent.
3) After acceptance 4) An offer cannot be revoked.

Explanation:

Marks : 1.0
Q212) What is a reasonable time for performance of a contract Id: 45385
1) is a question of fact 2) is a question of law

3) is a mixed question of fact & law 4) is a question of prudence

Explanation:

Q213) Reciprocal promises provide for doing certain things which are legal & certain others Marks : 1.0 which are illegal, under section
57 Id: 45391
1) the entire set of promises is void 2) the first set is voidable, but the second set
is void

3) the first set is valid but the second set is void 4) the entire set of promises is valid

Explanation:
Q214) An agreement consists of reciprocal promises between at least Marks : 1.0
Id: 45525
1) four parties. 2) six parties.

3) three parties. 4) two parties.

Explanation:

Q215) In which type of agreement is the intention to create legal relations presumed to Marks : 1.0
exist? Id: 45533
1) Agreements between friends or family. 2) Commercial or business agreements.

3) All written agreements. 4) The intention to create legal relations is never

presumed in an agreement.
Explanation:
Q216) Which of the following are not goods within the meaning of section 2(7) of the Sale of Marks : 1.0
 Goods Act, 1930 Id: 45434

1) jubilee coins 2) coins of antiquity

3) current coins Sold as curiosity 4) none of the above

Explanation:

Q217) Under section 2(14) of the Sale of the Goods Act, 1930, 'specific goods' means Marks : 1.0
Id: 45433

1) goods which are capable of identification 2) generic goods

3) goods identified and agreed upon 4) either (a) or (c)

Explanation:
Q218) The right of lien exercised by an unpaid seller is to

1) retain possession 2) regain possession

Marks : 1.0
3) recover price & other charges 4) recover damages Id: 45471
Explanation:
Q219) A contract means Marks : 1.0
Id: 45561

1) an agreement 2) enforceability of an agreement

3) Option A & B 4) Offer & proposal

Explanation:
Q220) The acceptance containing additions, limitations or other modifications shall amount
to
1) acceptance of the offer. 2) a counter offer.

Marks : 1.0
3) a valid acceptance. 4) cross-offers. Id: 45510
Explanation:

Q221) Which of the following is not an essential ingredient of a contract of sale of goods Marks : 1.0
Id: 45457

1) passing of title in goods 2) physical delivery of goods

3) both (a) and (b) 4) neither (a) nor (b)

Explanation:
 Marks : 1.0
Q222) On the valid performance of the contractual obligation by the parties the contract Id: 45508
1) is discharged 2) becomes enforceable

3) becomes void 4) becomes voidable

Explanation:

Q223) An agreement to do an act impossible in itself under section 56 is Marks : 1.0

Id: 45373

1) void 2) valid

3) voidable 4) unenforceable

Explanation:
Q224) Misrepresentation under section 18 means Explanation:
Marks : 1.0
Id: 45356
1) a positive assertion, in a manner not
warranted by the information of the person 2) any breach of duty, which gains an advantage
making it, not true but he believes it to be true to the person committing it, by misleading
another to his prejudice
3) causing a party to make an agreement to make
a mistake as to the subject matter of contract 4) all the above

Q225) A person is deemed to be in a position to dominate the will of another by undue Marks : 1.0 influence if the mental capacity is affected
temporarily or permanently by Id: 45357
1) reason of age 2) reason of illness

3) mental or bodily distress 4) all the above

Explanation:
 Marks : 1.0
Q226)
An acceptance can be revoked Id: 45318
1) at any time before the communication of 2) after its acceptance comes to the knowledge
acceptance is complete as against the of the promisee
promisee
3) both (a) & (b)

4) neither (a) nor (b).

Explanation:

Q227) Past consideration is valid in Marks : 1.0

Id: 45324

1) England only 2) India only

3) both in England & India 4) neither in England nor in India

Explanation:
Q228) Under section 2(b) if the person to whom the proposal is made signifies his assent
the proposal is said to have been
1) accepted 2) agreed

Marks : 1.0
3) provisionally agreed 4) tentatively accepted Id: 45299
Explanation:

Q229) ______________is made by words spoken Marks : 1.0

Id: 45564

1) Express contract 2) Implied Contract

3) Quasi Contract 4) Unlawful Contract

Explanation:
Q230) Under section 2(c) promisee is the Marks : 1.0
Id: 45308

1) person who makes the proposal 2) person who accepts the proposal

3) person who makes the promise 4) person to whom proposal is made

Explanation:

Q231) A married B and left for US, promising to pay B Rs. 50,000 per month till such time A Marks : 1.0 was in the US. This is a case of-
Id: 45501

1) Social obligation, not an agreement under 2) Void contract contract act

3) Voidable contract

4) Valid contract

Explanation:
Q232) Where one of the joint promisors makes a default in contribution of performance Marks : 1.0
Id: 45381

1) the other joint promisors have no right against 2) have to bear the loss in equal share
the defaulter

3) not supposed to bear the loss

4) the contract becomes void to that extent

Explanation:

Q233)
When the unpaid seller has parted with the goods to a carrier and the buyer has become Marks : 1.0
insolvent he can exercise ------------------ Id: 45292
1) right of lien. 2) right of stoppage in transit.
3) right of resale. 4) none of the above.

Explanation:
Q234) Two persons have the capacity to contract under section 11 Marks : 1.0
Id: 45371

1) if both are major 2) if both are not of unsound mind

3) if none is declared unqualified to contract 4) all are correct

Explanation:
Q235) If a transfer of title in goods from one person to the other is brought about under Marks : 1.0
Id: 45460
statutory compulsion, it will, within the meaning of the Sale of Goods Act, 1930
1) be no sale at all 2) always be a sale

3) depend on the facts of each case and terms of 4) only (b) and not (a) or
(c) the particular statute regulating the dealings whether there can be
contract of sale

Explanation:

Q236) Unless otherwise agreed, where goods are sent by seller to the buyer by a route Marks : 1.0
involving sea transit, the seller Id: 45455
1) must inform the buyer in time to get the goods 2) may insure the goods
insured

3) must insure the goods

4) need not inform the buyer

Explanation:
Q237) Seller means a person Marks : 1.0
Id: 45435

1) who sells or agrees to sell goods 2) who only sells good

3) who only agrees to sell goods 4) none of above

Explanation:

Q238) The Sale of Goods Act, 1930 came into force on Marks : 1.0
Id: 45394

1) 1st April, 1930 2) 1st July, 1930

3) 1st December, 1930 4) 31st January, 1931.

Explanation:
Q239) Every promise and every set of promises, forming the consideration for each other, Marks : 1.0 is an Id: 45294

1) agreement 2) contract

3) offer 4) acceptance

Explanation:

Q240) The offer must be... Marks : 1.0

Id: 45507

1) definite 2) incomplete

3) non legal 4) theoratical

Explanation:
Q241) A contract with or by a minor is a Marks : 1.0
Id: 45316

1) valid contract 2) void contract

3) voidable contract 4) voidable at the option of either party

Explanation:
Q242) Law of contract is – Marks : 1.0
Id: 45334

1) Not the whole law of agreements nor it is the 2) The whole law of agreements
whole law of obligations

3) The whole law of obligations

4) None of the above

Explanation:

Marks : 1.0
Q243) Consent is free under section 14 if not caused by Id: 45339
1) coercion& undue influence 2) fraud and misrepresentation
3) mistake subject to the provisions of sections 4) all the above
20, 21 and 22

Explanation:

Q244) An agreement enforceable by law at the instance of one party & not of other party Marks : 1.0 under section 2(i) is called Id: 45304

1) a valid contract 2) an illegal contract

3) void contract 4) a voidable contract

Explanation:
Q245) If the time of performance of the contract is the essence of the contract and the Marks : 1.0
promisor fails to perform the contract by the specified time Id: 45388

1) the contract becomes void 2) ) the contract remains valid

3) the contract becomes voidable at the instance 4) the contract becomes unenforceable
of the promisee

Explanation:

Q246) The duty of fixing value for the goods, under section 10 of the Sale of Goods Act, Marks : 1.0
1930 Id: 45485
1) can be delegated by the valuer 2) can be delegated by the valuer with the
consent of the buyer

3) cannot be delegated by the valuer 4) can be delegated by the valuer with the leave
of the court

Explanation:
Q247) In a contract of sell, unless goods are ascertained, there is Marks : 1.0
Id: 45427
1) a sell 2) a agreement to sell

4) an unenforceable agreement
3) a void agreement

Explanation:
Q248) Marks : 1.0
If a price is not determined by the parties in a contract of sale, the buyer is bound to pay Id: 45401

1) the price demanded by the seller 2) a reasonable price

3) price which buyer thinks is reasonable 4) price determined by independent third party.

Explanation:

Q249) A stipulation in a contract of sale of goods whose violation by seller gives a right of Marks : 1.0 rescission to buyer, is called
------------------ Id: 38807
1) Gurranty. 2) Warranty.

3) Condition. 4) Term.
Explanation:
Q250) Communication of a proposal is complete Marks : 1.0
Id: 45311

1) when it is put in the course of transmission 2) when it comes to the knowledge of the person
to whom it is made

3) when the proposal is communicated to the 4) all the above person to

whom it is made

Explanation:

Marks : 1.0
Q251) Two persons have the capacity to contract under contract act Id: 45497
1) if both are major 2) if both are of of unsound mind

3) if both are declared unqualified to contract 4) when both are minor

Explanation:
Q252) An agreement is a voidable contract when it is- Marks : 1.0
Id: 45342
1) Enforceable if certain conditions are fulfilled 2) Enforceable by law at the option of the aggrieved party
3) Enforceable by both the parties 4) Not enforceable at all

Explanation:

Q253) Which of the following is essential to constitute a valid offer. Marks : 1.0
Id: 45518

1) The offer must be made with a view to obtain 2) The offer must be made with the intention of
acceptance. creating legal relations.

3) The terms of the offer must not be loose, 4) All of the above
vague or ambiguous.

Explanation:
 Marks : 1.0
Q254) A promisee can accept the performance Id: 45377
1) from the promisor himself 2) from the representative of the promisor
competent to perform

3) from a third person 4) all the above

Explanation:
Q255) The person who gives the guarantee is called ………… Marks : 1.0
Id: 45519

1) Principal debtor 2) Surety

3) Creditor 4) Buyer

Explanation:
 Marks : 1.0
Q256) Risk follows ownership Id: 45422
1) only when goods have been delivered 2) only when price has been paid

3) whether delivery has been made or not 4) even when price has not been paid
Explanation:

Q257) Valid contracts Marks : 1.0

Id: 45509

1) are made by free consent. 2) are made by competent parties.

3) have lawful consideration and lawful object. 4) all of the above

Explanation:
Q258) When the consent to an agreement is obtained by undue influence, the agreement is
voidable at the option of
1) either of the parties to the agreement 2) a party whose consent is obtained

Marks : 1.0
3) a party who obtained the consent 4) none of the above Id: 45348
Explanation:
Q259) Under section 9 of the Sale of Goods Act, 1930, what is a reasonable price is Marks : 1.0
Id: 45482

1) a question of fact 2) a question of law

3) a mixed question of fact and law 4) only (c) and not (a) or (b)

Explanation:

Q260) A seller of goods is called Unpaid Seller when … Marks : 1.0

Id: 45545
1) The seller has not received 50% of price of 2) The whole of the price has not been paid or
goods tendered
3) Negotiable Instrument received as payment 4) Both (b) & (c)
has been dishonored

Explanation:

Marks : 1.0
Q261) Under section 2(c) promisor is the Id: 45307
1) person who makes the proposal 2) person who accepts the proposal

3) person who makes the promise 4) person to whom the proposal is made
Explanation:
Q262) In cases of joint promise generally a promisee can compel Marks : 1.0
Id: 45379

1) all the joint promisors to perform 2) any one of them to perform

3) some of them to perform 4) all the above

Explanation:

Marks : 1.0
Q263) Section 8 of the Sale of Goods Act, 1930, in its application is Id: 45472
1) confined to agreement to sell 2) confined to contract of sale

3) neither (a) nor (b) 4) only (b) and not (a)

Explanation:
Q264) In case of breach of a warranty, the buyer can Marks : 1.0
Id: 45412
1) repudiate the contract 2) claim damages only

3) return the goods 4) refuse to pay the price

Explanation:
Q265) A proposes, by letter, to sell a house to B for Rs. 10,00,000. The communication of Marks : 1.0 the proposal is complete Id: 45511

1) when B receives the letter. 2) when A dispatches the letter.

3) when A signs the letter. 4) when B knows about the letter.

Explanation:

Q266) Where a breach of contract occurs the innocent party can usually choose whether or Marks : 1.0 not to terminate the contract.
Id: 45494

1) Fully True 2) Fully False

3) Partially True 4) Partially False

Explanation:
Q267) What does “nemo dat quod non habet “ mean ? Marks : 1.0
Id: 45504
1) No one can give what he doesn't have 2) Not completing the contract

3) No one can transfer a greater right than he 4) No one shall be a judge in his own case
himself has

Explanation:

Marks : 1.0
Q268) An Executory Consideration is - Id: 45351
1) Consideration promised by executive of a 2) Consideration which consists simply of a
Company mutual exchange of promise each being a
consideration for the other
3) Consideration which should be executed on 4) Consideration which should be executed
the future date before the Court

Explanation:
Q269) When, at the desire of the promisor, the promisee or any other person has done or Marks : 1.0 abstained from doing or, does or abstain
from doing or promises to do or to abstain Id: 45301 from doing something, such act or abstinence or promise under section 2(d) is
called
1) reciprocal promise 2) consideration for the promise

3) counter offer 4) acceptance

Explanation:
Q270) The doctrine of caveat emptor applies, Marks : 1.0
Id: 45402

1) in case of implied condition & warranties 2) where buyer does not intimates the purpose &
depends on his own skill &judgement

3) goods are sold by sample 4) goods are sold by description

Explanation:

Q271) Under section 8 of the Sale of Goods Act, 1930 a contract for sale of goods can be Marks : 1.0
avoided where Id: 45476
1) the goods have perished/damaged due to 2) the goods have perished/damaged due to
the fault of the buyer the fault of the seller
3) the goods have perished/damaged due to 4) the goods have perished/damaged due to
the fault of either the buyer or the seller the fault neither of the buyer/nor the seller
Explanation:

Q272) Contract is defined as an agreement enforceable by law, vide Marks : 1.0

section______________of Indian contract Act Id: 45563

1) 2(e) 2) 2(f)

3) 2(h) 4) 2(i)

Explanation:

Q273) Consideration should be something in return of promise which Marks : 1.0

Id: 45336
1) both the law and parties regard, 2) only law regards a having
as having some value some value

3) only the parties regard some

value
4) only adequate value necessary

Explanation:

Marks :
1.0 Id:
Q274) The liability of a surety is:- 38805
1) More than that of the principal 2) less than that of the
debtor principal debtor
3) same as that of the principal 4) dependent on the court's
debtor descretion
Explanation:
Q275) A contract which can be repudiated at the option of one party only is Marks : 1.0
Id: 45573

1) void contract 2) unenforceable agreement

3) illegal agreement 4) voidable contract

Explanation:
Q276) If a contract for sale of goods is for sale of two or more things under an entire
Marks : 1.0 contract, the perishing of some of them would Id: 45480

1) avoid the whole contract 2) not avoid the contract at all

3) avoid the contract so far as it relates to the 4) either (b) or (c).

goods perished and not the whole contract

Explanation:

Q277) In the Sale of Goods Act, 1930, the term 'goods' does not include Marks : 1.0
Id: 45549

1) Stock and share 2) Growing crops

3) Grass 4) None of the above

Explanation:

Q278) A contract with minor is Marks : 1.0

Id: 45372
1) voidable at the instance of the minor 2) voidable at the instance of
other party

3) void 4) valid
Explanation:

Q279) In a sale, if goods are destroyed, loss falls on Marks : 1.0

Id: 45399
1) buyer 2) seller

4) seller, if price not

3) partly on buyer & partly on seller paid.
Explanation:
Q280) The prima facie evidence of a reasonable price within the meaning of section 9
of the
Sale of Goods Act, 1930 is
1) the current price 2) the market price

4) the average of the highest and

3) the one which the court fixes the lowest price in a period of
one year
Explanation:

Q281) A contract of sale of goods, on goods having been damaged/perished subsequent

 to Marks : 1.0 the formation of the contract under section 8 of the Sale of
Goods Act, 1930, can be Id: 45477 avoided
1) before the property in goods has passed to the 2) after
the property in goods has passed to the buyer buyer

3) at any time irrespective of

whether the 4) only (b) not (a)
or (c) property in goods has
passed to the buyer or not

Explanation:

Q282) Assignment by operation of law takes place Marks : 1.0

Id: 45353

1) by the mutual consent of the parties 2) by the will of either

party

3) when the subject matter of a contract ceases

4) by the death of a party to a contract to exist

Explanation:
Q283) Quality of goods' under section 2(12) of the Sale of Goods Act, 1930 has a
reference Marks : 1.0
Id: 45431

1) fitness for a particular purpose 2) state or condition

3) description 4) either (a) or (b) or (c)

Explanation:

Q284) The main object of a contract of sale is Marks : 1.0

Id: 45415

1) ) transferof possession of goods 2) transfer of property in

goods

3) delieveryof goods 4) payment of price

Explanation:
Q285) An agreement to remain unmarried is Marks : 1.0
Id: 45358

1) valid 2) voidable

3) void 4) unenforceable

Explanation:
Q286) A person subsequently accepts the act of the agent done without his consent
is Marks : 1.0
Id: 45539

1) Ratification 2) agency by estoppels

3) Revocation 4) Both a & c

Explanation:
Q287) Which one of the following statements is incorrect? Marks : 1.0
Id: 45495

1) Where parties want to modify the terms of the 2)

Where consideration is provided in return for previous
contract without making substantial one party's
agreement to change, the changes there is no
requirement of writing. agreement is called 'accord'.

3) If the parties intend to abandon the original

4) If the parties intend to abandon the original contract and

make a fresh agreement the new contract completely an
oral agreement is not one must be evidenced in writing.
always sufficient.

Explanation:
Q288) A lends Rs.500 to B. He later tells B that he need not repay the amount, the
contract Marks : 1.0 is discharged by Id: 45524

1) breach 2) waiver

3) novation 4) performance

Explanation:
 MULTIPLE CHOICE QUESTIONS

1. Indian Contract Act extends to the whole of India excepts to the state of?
a. Assam
b. Jammu & Kashmir
c. West Bengal
d. None of these
Ans: B

2. An agreement enforceable by law is called?

a. Void
b. Promise
c. Contract
d. All of these
Ans: C

3. Chapter I of the Indian Contract Act deals the ______ of proposals?

a. Communication
b. Revocation
c. Acceptance
d. All of these
Ans : D

4. In order to convert a proposal into a promise the acceptance must...?

a. Absolute
b. Unqualified
c. Absolute & Unqualified
d. None of these
Ans: C
5. Agreement means ________________.
a. Offer + acceptance
b. Offer + contract
c. Contract + acceptance
d. Enforceable by law
Ans:A

6. The two contracting parties must agree as regards the subject-matter of the
contract at the same time & in the same sense is called as __________.
a. personam
b. consensus-ad-idem
c. reciprocal promise
d. accepted proposal
Ans: B

7. Technical term of void contract is _________.

a. voidable contract
b. void-ab-initio
c. personam
d. void agreement
Ans: B

8. Communication of a proposal is complete when it comes to the knowledge of the person to

whom it s made.
a. True
b. Partly True
c. False
d. None of these
Ans: A
9. Incase of breach of contract of sale of some rarea article or thing for which there is no substitue
available in the market the court may grant-
a.Quantum Meruit
b.Rescission
c.Specific Performance
d. Injunction
Ans: C

10. _______ is one the object of which is unlawful.

a. Void contract
b. Wager
c. An illegal agreement
d. Voidable contract
Ans: C

11. A proposal, when accepted becomes a ________.

a. promise
b. contract
c. offer
d. consensus
Ans: A

12. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
13. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
a. wagering contract
b. bilateral contract
c. illegal contract
d. unenforceable contract
Ans: B

14. Promises which form the consideration or part of the consideration for each other is
called as __________.
a. reciprocal promise
b. reciprocal offer
c. reciprocal performance
d. consideration
Ans:A

15. If any parties to the contract refuses or fails to perform his part of the contract or by
his act makes it impossible to perform his obligation under the contract, it is called
as _________.
a. breach of contract
b. void contract
c. tender
d. novation
Ans:A

16. A Quasi- contract under Indian Contract Act

a. Is an agreement
b. Is a contract
c. Has on a legal obligation
d. None of these
Ans: C
17. A contingent contract dependent on the non happening of specified uncertain event within
fixed time can be enforced if the event __
a. Does not happen within a fixed time
b. Becomes impossible before the expiry of the fixed time
c. Happens within a fixed time
d. Both (a) & (b)
Ans: D

18. An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Ans:A

19. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B

20. Substitution of a new contract for the original contract is called as ______.
a. novation
b. rescission
c. alteration
d. remission
Ans:A
 21. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C

22. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B

23. The court order to restrain a person not to do a particular activity is called as
________.
a. quantum meruit
b. specific performance
c. injuction
d. novation
Ans:C

24. Coercion involves the usage of _________.

a. fraud
b. misrepresentation
c. undue influence
d. all the above
Ans:D
 25. A contract which arises on the basis of coercion is called as _________.
a. void contract
b. voidable contract
c. illegal contract
a. lawful contract
Ans:A

26. A contingent contract is ____________ contract.

a. Void
b. Voidable
c. Valid
d. Illegal
Ans:C

27. Damages which may reasonably be supposed to have been in the contemplation of
both parties as he probable result of the breach of a contract is known as ________.
a. ordinary damages
b. special damages
c. vindictive damages
d. nominal damages
Ans:B

28. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
 29.Vindictive Damages have been awarded-
a. for a breach of promise to marry
b. for a wrongful dishonour of a cheque by banker processing adequate funds of the customer
c. Either (1) OR (2)
d. Both (1) and (2)

30. An Executary Consideration is-

a. Consideration promised by an executive of a company
b. consideration which consists simply of a mutual exchange of promise each being the consideration
for the other.
c. consideration which should be executed on a future date
d. consideration which should be executed before the court
Ans: C

31. When a person signifies to another his willingness to do or to abstain from doing anything with
a view to obtaining the assent of that other to such act or abstinence-
he is said to-
a. enter into a contract
b. make a proposal
c.accept an offer
d. create legal obligation
Ans: B

32. An agreeement to agree in future is

a. valid
b. voidable
c. invalid.
d. illegal
Ans: C
 33. An agreement entered into with free consent and lawful but inadequate consideration is--
a. valid
b. voidable
c. invalid.
d. illegal
Ans: A

34. A minor's estate is liable for the ______ supplied to him

a. Luxuries
b. Necessities
c. Necessaries
d. All of these
Ans: C

35.The aggrieved party in breach of contract has not suffered any loss by reason of the
breach of contract, the damages recoverable by him is ________.
a. payment of interest
b. ordinary damages
c. special damages
d. nominal damages
Ans:D

36. If time is the essence of a contract and the promisor fails to perform the contract by the specified
time, the contract:
a. remains valid
b. becomes void
c. becomes unorceable
d. becomes voidable at the instance of the promise
Ans: D
 37. __________ damages are measured on the basis of extent of shock to the sentiments of the
promisee
a. Vindictive
b. Nominal
c. Loss of reputation
d. Discomfort
Ans: A

38. There are _________ ways for actual breach of contract.

a. 1
b. 2
c. 3
d. 4
Answer:B

39. The technical term “Quantum Meruit” denotes ____________.

a. performance of a contract
b. quantity involved in contract
c. suit for specific performance
d. as much as earned
Answer:D

40. Law of quasi-contract is also known as ________.

a. Law of returns
b. Law of restitution
c. Law of repudiation
d. Law of contract
Ans: B
 41. The contract of General Insurance is--
a. Contingent
b. Voidable
c. Valid
d. None of these
Ans: A

42. ___________ means intentional relinquishment of a right under the contract

a. waiver
b. wager
c. alteration
d. rescission
Ans:A

43. Termination of contractual relations between the parties to a contract is called as………..
a. performance of contract
b. discharge of contract
c. winding up of contract
d. none of the above
Ans:B

44. ____________ means passing over rights and liabilities from one person to another
person.
a. Devolution
b. Endorsement
c. Passing the buck
d. Escapism
Ans:A
 45.An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Answer:A

46. Responsibility of finder of goods under contract is __________.

a. indemnifier
b. bailee
c. owner
d. despatcher
Ans:B

47. A person who finds goods belonging to another and takes them into his custody, is
subject to the same responsibility as a ________________.
a. bailee.
b. true owner .
c. thief.
d. agent.
Ans:A

48. A finder of lost goods is a _____________.

a. bailer.
b. bailee.
c. true owner.
d. thief.
Ans:B
 49. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A

50. The position of finder of lost goods is that of a ___________.

a.Bailer .
b.Bailee.
c.Surety.
d.Principal debtor.
Ans: B

51. A gratuitous bailee is liable for defects in the goods bailed __________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases.
d. in particular case.
Ans:B

52.A gratuitous bailment is one which is _____________.

a. supported by consideration
b. not Supported by consideration
c. not enforced by law
d. void
Ans:B
 53. According to Sale of Goods Act, 1930, “Seller” means a person
a. Who only agrees to sell the goods
b. Who only sells the goods
c. Who sells or agrees to sell the goods
d. None of these
Ans: C

54. A bailee has___________.

a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A

55. In sale, if the goods are destroyed, the loss falls on _____________.
a. the buyer.
b. the seller.
c. partly on the buyer and partly on the seller.
d. third party.
Ans:A

56. If sale is by sample as well as by description, the implied condition is that the goods
shall correspond with ____________.
a. sample.
b. description.
c. both sample and description.
d. either sample or description.
Ans:C
 57. In a sale, there is an implied condition on the part of seller that he __________.
a. has right to sell the goods.
b. is in position of the goods.
c. will have the right sell.
d. will not have the right to resell.
Ans:A

58. A condition is a stipulation which is____________.

a. essential to the main purpose of contract of sale.
b. not essential to the main purpose of the contract of sale.
c. collateral to the main purpose of contract of sale.
d. additional security.
Ans:A

59. ' Contract of Sale' under Sale of Goods Act, 1930, comprises of contracts which are,
a. Executory
b. Concluded
c. Both executory and executed
d None of these
Ans: C
60. In a contract of sale of goods the implied condition of wholesomeness applies to---
a. Medicines
b. Eatables
c. Cloth
d. Computers
Ans: B

61. The consideration in a contract of Sale is called--

a. Price
b. Exchange Money
c. Barter Money
d. Rewards
Ans:A
 62. When a breach of condition is treated as a breach of warranty, the buyer cac--
a. Repudiate the contract
b. Reject the goods
c. Claim damages
d. None of these
Ams: C

63. The main objective of a contract of sale is ______________.

a. transfer of possessing of goods.
b.transfer of property in goods from seller to buyer.
c. delivery of goods.
d. payment of price.
Ans:B

64. When there is a contract for the sale of unascertained goods, the property in
goods___________.
a. passes when the buyer pays the price.
b. does not pass until the goods are ascertained.
c. when the contract is entered into.
d. when the buyer accepts the goods.
Ans:B

65. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
a. accept the whole.
b. reject the whole.
c. accept the goods ordered for and can return the excess quantity.
d. either a or c
Ans:D
 66. The lien of an unpaid seller depends on _____________.
a. possession.
b. title.
c. ownership.
d. possession and ownership.
Ans:A

67. An unpaid seller can excises the right of stoppage in transit when the carrier holds the
goods ____________.
a. as sellers agent.
b. as buyer s agent.
c. as agent of both of them.
d. in his own name.
Ans:D

68. The sale of goods act, 1930 deals with _________.

a. movable goods only.
b. immovable goods only.
c. both movable and immovable goods.
d. all goods except ornaments.
Ans:A

69. The term, ‘goods’ for the purpose of sale of goods act does not include _________.
a. money.
b. actionable claims.
c. immovable property.
d. all the above.
Ans:B
70.A contract for the sale of ‘furniture goods’ is_____________.
a. sale.
b. agreement to sell.
c. void.
d. voidable.
Ans:B

71. ___________ gives the buyer only a right to claim damages.

a. Condition.
b. Guarantee.
c. Warranty.
d. Indemnity.
Ans:C

72. Which of the following is not an implied condition in a contract of sale _________.
a. condition as to title.
b. condition as to description.
c. condition as to freedom from the encumbrance.
d. condition as to a sample.
Ans:C

73. A contract of sale may be __________.

a. absolute only.
b. condition only.
c. absolute and conditional.
d. indemnity.
Ans:C

74. S and P gets into a shop. S says to the shopkeeper C “let P have the goods, and if he
does not pay you, I will”. “This is a __________.
a.contract of guarantee.
b.contract of indemnity.
c.wagering contract.
d.quasi-contract.
Ans:A

75. A bailment is usually created by agreement between ______________.

a. the principal & the agent.
b. the contracted parties.
c. the bailer & the bailee.
d. the guaranteed & parties.
Ans: C.

76. The gratuitous bailer is liable to bailee for the defects in the goods bailed…………
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases of loss.
d. in certain case of loss.
Ans:B

77.The term 'property' as used in the Sale of Goods Act, 1930 means_____________
a. possession.
b. ownership.
c. both ownership and possession.
d. the subject matter of contract of sale.
Ans:B

78.The term “contract to sale” is a generic term which includes both __________ .
a. sale & an agreement to sell.
b. contract & agreement.
c. possession & Ownership of goods.
d. transfer to ownership & possession.
Ans: A

79. _________ form the subject of a contract of sale.

a. Assets.
b. Consideration
c. Goods.
d. Agreement to sell.
Ans: C

80. There is a constructive delivery of goods_____________.

a. When the seller hands over to the buyer the key of the warehouse where the goods are
lying.
b. When a third person in possession of the goods acknowledged to the buyer that he
holds them on his behalf.
c. When the seller physically delivers the goods to the buyers.
d. When the seller asks the buyer to take delivery of the goods.
Ans:B

81.Where there is no specific agreement as to place, the goods sold are to be delivered
at the place______________.
a. at which they are at the time of sale.
b. of the buyer.
c. desired by the buyer.
d. to be determined by the seller.
Ans:A

82. An implied warranty or condition as to quality or fitness for a particular purpose may
be annexed by the usage of ________.
a. trade.
b. goods.
c. commerce.
d. agreement to sell.
Ans: A

83. __________ is an illicit act dissuading the intending purchase r from bidding.
a. Withholding the goods.
b. Damping.
c. Knockout.
d. Repudiation.
Ans: B

84. Where there is an unconditional contract for the sale of specific goods in a
deliverable state, the property in the goods passes to the buyer when ______________.
a. the goods are delivered to the buyer.
b. the price is paid by the buyer.
c. the contract is made.
d. the buyer accepts the good.
Ans:C

85. ___________ is a contract in which the terms are started in words (Written or
Spoken) by the parties.
a. Express contract.
b. Implied contract.
c. Executed contract.
d. Executory contract.
Ans: A

86. The doctrine of caveat emptor applies______________

a.in case of implied conditions and warranties.
b.when the buyer does not intimate the purpose to the seller and depends upon his own
skill and judgment.
c.when goods are sold by sample.
d.when goods are sold by description.
Ans:A

87. “A” who purchases certain goods from B by a misrepresentation and pledges them
with “C”. The pledge is _____________.
a. valid.
b. void.
c. voidable.
d. invalid.
Ans:B

88. In a hire – purchase agreement, the hirer ____________.

a. has an option to buy the goods.
b. must but the goods.
c. must return the goods.
d. is not given the possession of the goods.
Ans:A

89. ____________ means competency of the parties to enter into a valid contract.
a. Solvency.
b. Capacity.
c. Consequences.
d. Position.
Ans: B

90. The measure of damages in case of breach of a contract is the difference between the…….
a. contract price and the market price at the date of breach.
b. contract price and the maximum market price during the terms of contract.
c. contract price and the price at which the plaintiff might have sold the goods.
d. contract price and the price fixed by the court.
Ans:A

91. Technical term of contract without consideration is called as ________ .

a. nadum pactum.
b. void – ad-initio.
c. consensus –ad-idem
d. caveat emptor.
Ans: A
 92. Mr. A, a tradesman, leaves goods at Mr. B’s house by mistake. Mr. B treats the goods
as his own. He is bound to pay for Mr.A. This is an example for obligation to pay for……..
a. non-gratuitous act
b. gratuitous act
c. coercion
d. quantum meruit
Ans:A

93. Where the buyer wrongfully refuses to aceept the goods, the seller may recover the damages
a. for the reasonable charges for the care and the custody of goods
b. for the loss caused by the non accepatnce of goods
c. either (a) OR (b)
d. both (a) AND (b)
Ans: D

94. Under the Sale of Goods Act 1930, the existing goods are classified as
a. Specified Goods
b. Ascertained Goods
c. Unascertained Goods
d. All of the above
Ans: D

95. Following is not a document of title

a. railway receipt
b. bill of lading
c. dock of warrant
d. None of these
Ans: D
 96. When the terms of the contract of sale of goods are such that by reserving the right of disposal,
the seller commits a breach of contract, and the goods appropriated to the contract does not cause the
property in goods to pass to the buyer. It is--
a. Partly True
b. True
c. False
d. None of these
Ans: B

97. When the seller exercises right of lien or right of stoppage of goods in transit and gives notice
to the buyer for payment and the buyer does not pay or tender within reasonable time , an unpaid seller
can--
a. re-sale the goods
b. cannot re-sale the goods
c. ask again to the buyer
d. take possesion and mark the good as bad
Ans: A

98. Ignorance of law is _____________.

a. an excuse
b. not an excuse
c. punishment
d. offence
Ans:B

99. ‘A’ permits a coolie to put his luggage to a carriage. The contract comes into
existence as soon as the coolie puts the luggage. So ‘A’ has only to fulfill his part.
This is an example for __________.
a. unilateral contract
b. bilateral contract
c. implied contract
d. executed contract
Ans:A
 100. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
 Unit 4 The Companies (Amendment) Act. 2015
1. Section 12 of Companies Act 1956, deals with

a. Incorporation b. Share capital c. Number of Directors

d. Share holders.

Ans. a

2. Maximum number of members required in the private ltd company-

a. 100 b. 50 c. 200 d. 150.

Ans. c

3. Maximum number of members required in the public company-

a. 100 b. 50 c. 200 d. unlimited.

Ans. d

4. Minimum number of members required to apply for incorporation certificate in a

public ltd company is

a. 3 b. 2 c. 7 d. 50

Ans. c

5. The application for registration of a company should be presented to the registrar of

the state in which the _______________ of the company is to be situated

a. Manufacturing plant b. first branch c. business office d.

any of the above.

Ans. c

6. The application for registration of a company should be presented to the _______________ of

the state appointed under Companies Act 1956

a. Controller b. registrar c. Governor

d. registration officer

Ans. b

By Prof. Mayuree Tawade Page 1

7. Number of documents to be submitted, by a public ltd company, to the registrar while
applying for incorporation of the company is

a. 3 b. 2 c. 7 d. 50

Ans. c

8. The address of the registered office of the company must be notified to the registrar
within _________ days of registration, if it is not done at the time of incorporation

a. 15 b. 30 c. 60 d. 45

Ans. b

9. Among the following which documents are not mandatory to be submitted to the
registrar along with incorporation application by a private company?

a. Address of Registered office & undertaking b. Undertaking and statement of

capital

c. statement of capital & list of directors d. list of directors and statement of

capital

Ans. a

10. A statement of nominal capital must be given at the time of incorporation by the
company when the share capital is less than

a. 50 Lakh b. 1 crore c. 10 Lakh d. 25 Lakh

Ans. d

11. If the proposed nominal capital is more than 25 lakh at the time of incorporation
then the company needs to submit ________________ along with the application

a. statement of capital b. certificate of incorporation

c. certificate of capital d. certificate of incorporation

Ans. c

12. The certificate of capital will be issued by

a. Registrar of companies Act b. Controller of companies Act.

c. Registrar of capital issues d. controller of capital issues

Ans. d

By Prof. Mayuree Tawade Page 2

13. The articles of association needs to be signed by

a. all proposed directors b. registrar c. subscribers of memorandum

d. none of the above

Ans. c

14. The company will be considered as separate person and different from its members
from the date (when the) _____________

a. start of business b. Apply for registration

c. receive incorporation certificate d. mentioned in certificate

Ans. d

15. Number of clauses in Memorandum of Association is

a. 5 b. 6 c. 7 d. 8

Ans. b

16. If a company is instructed to change its name which resembles the name of an
existing company then the company can change the name by

a. Passing a special resolution b. obtaining permission from

central government

c. Passing an ordinary resolution d. Both a & b

Ans. c

17. Which of the following clause of Memorandum of Association cannot be altered?

a. Name b. Object c. situation d. liability

Ans. d

18. When the registered office of a company is changed within a city then it has to be
intimated to the registrar within ________ days of such change

a. 60 b. 45 c. 30 d. 7

Ans. c

19. “Men may come and men may go but the company exist”- this explains which
characteristics of the company as per companies Act 1956

a. Separate legal entity b. Perpetual Succession c. Capacity to sue

d. None of the above

Ans. B

By Prof. Mayuree Tawade Page 3

20. The liability of the members of the company can be limited by

a. Share b. Guarantee c. Both a & b d. Neither a nor b

Ans. c

21. The shares of a _______________ company can be freely transferable

a. Private ltd b. Public ltd c. Partnership d. all of the

above

Ans. b

22. _________ are the company created by special act of the legislature

a. Registered company b. Public Ltd Company c. Private ltd company

d. Statutory Company

Ans. d

23. A private company means a company which has a minimum paid up capital of Rs.—
———-

a. 1,00,000 b. 5,00,000 c. 50,00,000 d. none of the above

Ans. a

24. A private company means a company which has a minimum paid up capital of Rs.—
———-

a. 1,00,000 b. 5,00,000 c. 50,00,000 d. none of the above

Ans. b

25.___________ cannot give invitation to the public to subscribe for any shares in or
debentures of the company

a. Subsidiary company b. Statutory Company c. Private company

d. Registered company

Ans. c

26. A Government Company means any company in which not less than 51% of the
paid-up share capital is held by

a. Central Government b. State government c. Both a & b

d. Neither a nor b

Ans. c

By Prof. Mayuree Tawade Page 4

27. A copy of the ________________ must accompany each from of application for
shares offered to the public.

a. Memorandum of association b. Prospectus

c. Articles of association d. None of the above

Ans. b

28. If the company can make arrangements for raising the capital privately so that
pubic appeal is unnecessary, the company is required to prepare a _________________

a. Prospectus b. statement in lieu of Prospectus c. certificate of Prospectus

d. none of the above

Ans. b

29. The Prospectus must be issued to the public within ______________ days of its date

a. 30 b. 60 c. 90 d. 100

Ans. c

30._______________ capital means the sum mentioned in the capital clause of

Memorandum of Association

a. Full capital b. Maximum capital c. share capital

d. Nominal Capital

Ans. d

31. Par value of shares means the __________ value of the shares

a. Actual b. face c. Market d. dividend

Ans. b

32. The dividend payable to ___________ shareholders is payable on fixed figure or per
cent

a. Equity b. non preference c. Preference d. all of the

above

Ans. c

By Prof. Mayuree Tawade Page 5

33._____________ share capital has priority both in repayment of dividend as well as
capital.

a. Equity b. non preference c. Preference d. all of the

above

Ans. c

34.__________ means the total amount of called up share capital which is actually paid
to the company by the members

a. nominal capital b. reserve capital c. called up capital d.

Paid-up capital

Ans. d

35. __________ means the total amount of called up capital on the shares issued and
subscribed by the shareholders on capital account.

a. Called-up capital b. subscribed capital c. nominal capital

d. Paid-up capital

Ans. a

36. For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the ___________
amount

a. Profit b. Market value c. dividend d. premium

Ans. d

37. Powers, rights, remuneration, qualification and duties of directors are discussed
clearly in

a. Memorandum of Association b. Articles of Association c. Prospectus d. none of the above

Ans. b

38. A company is known as the _______company of another company if it has control

over that other company.

a. subsidiary b. holding c. controlling d. statutory

Ans. b

39. A person cannot hold directorship in more than ____ public companies

a. 3 b. 10 c. 20 d. 7

Ans. 20

By Prof. Mayuree Tawade Page 6

40. Private company prohibits any invitation or acceptance of deposits from persons
other than its ___________

a. Members b. director’s c. Partners d. banks

Ans. a

41. The company needs to obtain prior permission from central government when it
changes the address of its registered office from

a. One city to another city b. within the same city

c. One state to another d. one country to another country

Ans. c

42. the most important document of a company is its __________.

a. prospectus. b. annual report. c. memorandum of association .

d. articles of association .

Ans. c

43. The rules and regulations for the internal management of a company are contained
in its_______.

a. prospectus . b. annual report . c. memorandum of association .

d. articles of association .

Ans: d

44. Mark out the document that need not be prepared and registered with the registrar
of companies in public limited companies.

a. statutory declaration b. memorandum of association .

c. articles of association . d. d. directors undertakings to take up and pay for

qualification shares.

Ans: c

By Prof. Mayuree Tawade Page 7

45. The union government may appoint such number of directors in a company as it
may deem necessary

A. at its own initiative. B. on the application of least 100 members of the company.

C. on the application of members holding at least 10% voting rights.

D. any of the above .

Ans: d

46. A director’s election takes place in a general meeting through a separated

Resolution passed by a _______ majority.

a. single. b. two-thirds. c. three-fourths.

d. five-sixths

Ans: a

47. Which of the following is beyond the powers of the board of directors?

a. To issue debentures. b. To make loans.

c. To remit the payment of any debt due by a director. d. to issue prospectus.

Ans: c

48. The minimum subscription is to be received within ______days of the offer.

a. 30. b. 60. c. 120. d. 150.

Ans: c

49. The private company requires conversion of a public company into a __________.

a. an ordinary resolution b. a special resolution

c. a special resolution and union government’s approval

d. a special resolution and company law board approval

Ans: c

50. A share certificate once issued by the company binds it in two ways, namely by
estoppel as to title and ___________.

a. by estoppel as to payment. b. by estoppel as to profit.

c. by estoppel as to dividend. d. none

Ans: a

By Prof. Mayuree Tawade Page 8

51. Share capital of a company means __________.

A. equity share capital . B. preference share capital

C. equity and preference share capital .

D. equity and preference share capital and debentures.

Ans: c

52. A shareholder in a company___________.

a. can be its debenture holder

b. cannot be its debenture holder

c. alone can become its debenture holder

d. must also become its debenture holder within a year of being a shareholder.

Ans: a

53. The dividend on preference capital is paid_____________.

a. whenever there are profits

b. only if there are profits.

c. even if there are no profits.

d. only when the directors recommend it .

Ans. d

By Prof. Mayuree Tawade Page 9

 Practice Questions
1. An agreement enforceable at law is a

(a) Enforceable acceptance

(b) Accepted offer

(c) Approved promise

(d) Contract

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

(a) Agreement

(b) Contract

(c) Offer

(d) Acceptance.

3. Promises which form the consideration or part of the consideration for each other are
called

(a) Reciprocal promises

(b) Cross offers

(c) Conditional offer

(d) Conditional promises.

4. An agreement not enforceable by law is stated to be void under

(a) Section 2(d)

(b) Section 2(e)

(c) Section 2(f)

(d) Section 2(g).

5. Void agreement signifies

(a) Agreement illegal in nature

(b) Agreement not enforceable by law

(c) Agreement violating legal procedure

By Prof. Mayuree Tawade Page 1

(d) agreement against public policy.

6. Offer as defined under section 2(a) is

(a) Communication from one person to another

(b) Suggestion by one person to another

(c) Willingness to do or abstain from doing an act in order to obtain the assent of other
thereto

(d) None of the above.

7. Under section 2(b) if the person to whom the proposal is made signifies his assent the
proposal is said to have been

(a) Accepted

(b) Agreed

(c) Provisionally agreed

(d) Tentatively accepted.

8. A proposal when accepted becomes

(a) Promise under section 2(b)

(b) Agreement under section 2(e)

(c) Contract under section 2(h)

(d) none of the above.

9. When, at the desire of the promisor, the promisee or any other person has done or
abstained from doing or, does or abstain from doing or promises to do or to abstain
from doing something, such act or abstinence or promise under section 2(d) is called

(a) Reciprocal promise

(b) Consideration for the promise

(c) Counter offer

(d) Acceptance.

10. Promises which form the consideration or part thereof, for each other under section
2(F) are called

(a) Acceptances for different proposals

(b) Agreements

By Prof. Mayuree Tawade Page 2

(c) Reciprocal promises

(d) Consideration.

11. Every promise or set of promises forming the consideration for each other under
section 2(e) is called

(a) Reciprocal promise

(b) Contract

(c) Agreement

(d) None of the above.

12. 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) Void contract

(d) A voidable contract.

13. Which is correct?

(a) Proposal + acceptance = promise

(b) Promise + consideration = agreement

(c) Agreement + enforceability = contract

(d) All the above.

14. In a valid contract, what comes first?

(a) Enforceability

(b) Acceptance

(c) Promise

(d) Proposal.

15. Under section 2(c) promisor is the

(a) Person who makes the proposal

(b) Person who accepts the proposal

(c) Person who makes the promise

By Prof. Mayuree Tawade Page 3

(d) Person to whom the proposal is made.

16. Under section 2(c) promisee is the

(a) person who makes the proposal

(b) Person who accepts the proposal

(c) Person who makes the promise

(d) Person to whom proposal is made.

17. Goods displayed in a shop with a price tag is an

(a) Offer

(b) Invitation to offer

(c) Counter offer

(d) None of the above.

18. Tender is

(a) An offer

(b) An invitation to offer

(c) A counter offer

(d) A promise.

19. 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.

20. 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.

By Prof. Mayuree Tawade Page 4

21. 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.

22. Revocation of offer by letter or telegram can be complete

(a) When it is despatched

(b) When it is received by the offeree

(c) When it reaches the offeree

(d) Both (a) and (c).

23. Acceptance to be valid must

(a) Be absolute

(b) Be unqualified

(c) Both be absolute & unqualified

(d) Be conditional.

24. A contract with or by a minor is a

(a) Valid contract

(b) Void contract

(c) Voidable contract

(d) Voidable at the option of either party.

25. A contract which ceases to be enforceable by law becomes void

(a) When it ceases to be enforceable

(b) Before it ceases to be enforceable

(c) No such condition necessary

(d) None of above.

26. An acceptance can be revoked

(a) At any time before the communication of acceptance is complete as against the promisee

By Prof. Mayuree Tawade Page 5

(b) After its acceptance comes to the knowledge of the promisee

(c) Both (a) & (b)

(d) Neither (a) nor (b).

27. A proposal stands revoked

(a) By communication of notice of revocation by the proposer

(b) By failure of acceptor to fulfil a condition precedent

(c) By death or insanity of proposer to the knowledge of acceptor

(d) All the above.

28. A proposal can be accepted

(a) By notice of acceptance

(b) By performance of condition of proposal

(c) By acceptance of consideration for a reciprocal promise

(d) All the above.

29. Enforceable agreements are the one

(a) Made by free consent

(b) Parties to the contract are competent to enter into an agreement

(c) Having lawful consideration & lawful object

(d) all the above.

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.

31. Which one of the following is correct?

(a) Past consideration is no consideration

(b) Consideration can be past, present or future

(c) Consideration can only be present

By Prof. Mayuree Tawade Page 6

(d) Consideration can only be present & future.

32. Past consideration is valid in

(a) England only

(b) India only

(c) Both in England & India

(d) Neither in England nor in India.

33. An agreement not to raise the plea of limitation is

(a) Valid & binding

(b) Void

(c) Voidable

(d) illegal.

34. A letter of acceptance sent by post is lost in transit

(a) There is a concluded contract as the letter of acceptance is put in the course of
transmission

(b) There is no concluded contract as the acceptance has not come to the knowledge of the
proposer

(c) There is no concluded contract as the acceptance has not been communicated to the
proposer

(d) All the above.

35. When the consent to the contract is caused by coercion, the contract under section
19 is

(a) Valid

(b) Voidable

(c) Void

(d) illegal.

By Prof. Mayuree Tawade Page 7

36. A's son forged B's name to a promissory note. B under threat of prosecuting A's son
obtains a bond from A for the amount of the forged note. If B sues on this bond the
court

(a) Has no jurisdiction in this case

(b) Must not set aside the bond

(c) May set aside the bond

(d) None of above.

37. When the consent is caused by misrepresentation, the contract under section 19 is

(a) Valid

(b) Void

(c) Voidable

(d) illegal.

38. When the consent is caused by undue influence, the contract under section 19A is

(a) Valid

(b) Void

(c) Voidable

(d) illegal.

39. Where both the parties are under mistake as to matter of fact, the contract under
section 20 is

(a) Voidable

(b) Void

(c) Valid

(d) illegal.

40. Where one of the parties is under a mistake as to matter of fact the contract is

(a) Valid

(b) Void

(c) Voidable

(d) illegal.

By Prof. Mayuree Tawade Page 8

41. Considerations & objects are unlawful where it is

(a) Forbidden by law or defeat the provision of any law

(b) Which is fraudulent?

(c) Which is immoral & against the public policy

(d) All the above.

42. 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.

43. A contract without consideration under section 25 is

(a) Valid

(b) Voidable

(c) Void

(d) illegal.

44. Consideration should be something in return of promise which

(a) Both the law and parties regard, as having some value

(b) Only law regards a having some value

(c) Only the parties regard some value

(d) Only adequate value necessary.

45. If the proposer prescribes the mode & manner of acceptance, the acceptance

(a) Can be in any manner & mode

(b) Should be in the manner & mode prescribed

(c) Can be in any reasonable mode & manner

(d) All the above.

By Prof. Mayuree Tawade Page 9

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

(a) Minor

(b) Insane

(c) Declared unqualified

(d) all the above.

47. 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.

48. 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.

49. A contract which is valid initially however, ceases to be enforceable subsequently,

the contract

(a) remains valid

(b) becomes voidable when enforceable

(c) Becomes void when it enforceable

(d) becomes void since inception.

50. Agreements, the meaning of which is not certain or not capable of being made
certain under section 29 is

(a) Void

(b) Voidable

(c) illegal

(d) Valid

By Prof. Mayuree Tawade Page 10

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

(a) Valid

(b) Voidable

(c) Void

(d) Unenforceable

52. An agreement restraint of trade is valid under section 27 if relates to

(a) sale of goodwill

(b) Mutual adjustment

(c) Business contingency

(d) none of the above.

53. An agreement not to pursue any legal remedy to enforce the rights under section 28
is

(a) Valid

(b) Voidable

(c) Void

(d) Unenforceable.

54. An agreement not to persue legal remedies but to refer the dispute to the arbitrator,
under section 28 is

(a) Valid

(b) Voidable

(c) Void

(d) Unenforceable.

55. An agreement to refer the dispute to the arbitrator is valid

(a) In respect of disputes already arisen

(b) In respect of disputes which may arise in future

(c) Both (a) & (b)

(d) Neither (a) nor (b)

By Prof. Mayuree Tawade Page 11

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

(a) Void

(b) Voidable

(c) Valid

(d) Unenforceable

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

(a) Unlawful

(b) Void

(c) Voidable

(d) Valid.

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

(a) Void

(b) Voidable

(c) Valid

(d) Unenforceable

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

(a) Valid to the extent the same are lawful

(b) Void to the extent the same are unlawful

(c) Void as a whole

(d) Valid as a whole.

60. An agreement shall be void on account of

(a) Mistake of fact by one party

(b) Mistake of fact by both the parties

(c) Mistake of foreign law

(d) Both (a) & (b).

By Prof. Mayuree Tawade Page 12

61. Coercion which vitiates free consent under section 15 is

(a) Committing or threatening to commit any act which is forbidden by law

(b) Committing or threatening to commit any act which is forbidden by Indian Penal Code

(c) Unlawful detaining or threatening to detain any property with an intention to causing any
person to enter into an agreement

(d) All the above.

62. What is correct of a standard form contract?

(a) It is a valid contract

(b) One party has no choice but to accept & sign the contract

(c) Both (a) & (b)

(d) The consent is not a free consent.

63. Law of contract primarily

(a) Specifies the circumstances in which promises are binding on the parties to the contract

(b) Lays down certain norms by which the parties are bound

(c) Lays down the circumstances under which a promise may be made

(d) All the above.

64. Misrepresentation under section 18 means

(a) A positive assertion, in a manner not warranted by the information of the person making
it, not true but he believes it to be true

(b) Any breach of duty, which gains an advantage to the person committing it, by misleading
another to his prejudice

(c) Causing a party to make an agreement to make a mistake as to the subject matter of
contract

(d) All the above.

65. A person is deemed to be in a position to dominate the will of another by undue

influence if the mental capacity is affected temporarily or permanently by

(a) Reason of age

(b) Reason of illness

(c) Mental or bodily distress

By Prof. Mayuree Tawade Page 13

(d) All the above.

66. An agreement to remain unmarried is

(a) Valid

(b) Voidable

(c) Void

(d) Unenforceable.

67. A general offer open for world at large can be accepted

(a) By sending a communication of acceptance

(b) By complying with the conditions of offer

(c) By tendering himself to comply the conditions of offer

(d) None of the above.

68. The term consensus ad-idem means

(a) General consensus

(b) Reaching an agreement

(c) Meeting of minds upon the same thing in the same sense

(d) all the above.

69. Which one of the following does not amount to fraud?

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

(b) Active concealment of a fact

(c) A representation made without knowing it to be false, honestly believing it to be true

(d) A promise made without any intention of performing it.

70. Contract without consideration made in writing & registered and made on account
of natural love and affection is

(a) Void

(b) Voidable

(c) Valid

(d) Unenforceable.

By Prof. Mayuree Tawade Page 14

71. Inadequacy of consideration does not make the contract

(a) Void

(b) Voidable

(c) Unenforceable

(d) Neither void nor voidable.

72. Inadequacy of consideration is relevant in determining the question of

(a) Fraud

(b) Misrepresentation

(c) Undue influence

(d) Free consent.

73. 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.

74. A contract based on the happening or non- happening of a future event under
section 31 is called

(a) A contingent contract

(b) A wagering contract

(c) A contract marked with uncertainty and hence void

(d) None of the above.

75. A contingent contract to do or not to do anything on the happening of an uncertain

future event under section 32

(a) is never enforceable

(b) becomes enforceable only on the happening of that event

(c) Enforceable since the time of making it

(d) becomes enforceable in the immediate possibility of happening of that event.

By Prof. Mayuree Tawade Page 15

76. A contingent contract

(a) Is void

(b) Never becomes void

(c) Becomes void when the event becomes impossible

(d) is voidable.

77. A contingent agreement based on an impossible event under section 36

(a) is void

(b) Is void till the impossibility is known

(c) Becomes void on the knowledge of impossibility

(d) all the above.

78. What is true of 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).

79. 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.

80. A contract with minor is

(a) Voidable at the instance of the minor

(b) Voidable at the instance of other party

(c) Void

(d) Valid.

By Prof. Mayuree Tawade Page 16

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

(a) Void

(b) Valid

(c) Voidable

(d) Unenforceable.

82. A contingent contract based on the specified uncertain event happening within a
fixed time under section 35

(a) Remains valid even if the event does not happen within that fixed time

(b) Becomes void at the expiration of the time fixed

(c) Becomes void if the happening of that event becomes impossible before the expiry of time
fixed

(d) Both (b) & (c).

83. A contingent contract based on the specified uncertain event not happening within a
fixed time under section 35

(a) Can be enforced if the event does not happen within the time fixed

(b) Can be enforced if before the expiry of time fixed, it becomes certain that such an event
shall not happen

(c) Cannot be enforced at all, being void

(d) Both (a) & (b).

84. A promisor can perform

(a) The promise himself

(b) The promise through his representative competent to perform

(c) The promise through his representative irrespective of the competency of that
representative

(d) Both (a) & (b).

85. A promisee can accept the performance

(a) from the promisor himself

(b) From the representative of the promisor competent to perform

(c) From a third person

By Prof. Mayuree Tawade Page 17

(d) all the above.

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

(a) All the promisors jointly

(b) Any one of them individually

(c) One not authorised to perform

(d) None of the above.

87. In cases of joint promise generally a promisee can compel

(a) All the joint promisors to perform

(b) Any one of them to perform

(c) Some of them to perform

(d) All the above.

88. Generally, the joint promisors can

(a) Compel each other to contribute equally

(b) Not to compel each other to contribute equally

(c) Cannot compel each other to contribute

(d) None of the above.

89. Where one of the joint promisors makes a default in contribution of performance

(a) The other joint promisors have no right against the defaulter

(b) Have to bear the loss in equal share

(c) Not supposed to bear the loss

(d) The contract becomes void to that extent.

90. In case of default by joint promisors the promisee

(a) Can sue any one of them for the entire promise

(b) Can sue any one of them to the extent of his share in the joint promise

(c) Both (a) & (b)

(d) Cannot sue any single promisee.

By Prof. Mayuree Tawade Page 18

91. In case of death of a joint promisor(s) the promisee

(a) Can enforce the contract against the survivor(s) of the said joint promisor(s) alongwith the
joint promisors who are alive

(b) Cannot enforce the contract against the survivor(s) of the said joint promisor(s)

(c) Both (a) & (b)

(d) Cannot enforce the contract against any of them.

92. In a contract not specifying the time for performance, the promisor can perform the
contract

(a) Within any time howsoever long it may be

(b) Within the shortest time

(c) Within a reasonable time

(d) None of the above.

93. What is a reasonable time for performance of a contract?

(a) Is a question of fact?

(b) Is a question of law?

(c) Is a mixed question of fact & law

(d) Is a question of prudence?

94. A contract not specifying the place of performance

(a) Performed at any place to the knowledge of the promisee

(b) The promisor has to apply to the promisee for appointment of a place of performance &
perform the promise at that place

(c) The promisor need not seek any instructions from the promisee as to the place of
performance

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

95. in case the promisee prescribes the manner and time of performance of promise

(a) The performance must be in the manner and at the time prescribed

(b) The performance can be in a different manner but at the time prescribed

(c) The performance can be in the manner prescribed but at a time beyond the time prescribed

By Prof. Mayuree Tawade Page 19

(d) The performance need not be in the manner and time prescribed.

96. If the time of performance of the contract is the essence of the contract and the
promisor fails to perform the contract by the specified time

(a) The contract becomes void

(b) The contract remains valid

(c) The contract becomes voidable at the instance of the promisee

(d) The contract becomes unenforceable.

97. If the time is not the essence of the contract the failure to perform the contract by
the specified time makes the contract

(a) Void

(b) Voidable at the instance of the promisee

(c) Remains valid but the promisee can claim compensation for the loss suffered by him by
such failure

(d) remains valid & can be performed at any subsequent time without being liable for the loss
suffered by the promisee.

98. In contract for sale of immovable property the presumption is that the time is

(a) The essence of the contract

(b) Not the essence of the contract

(c) The essence of the contract but failure does not make the contract voidable

(d) Not the essence of the contract but makes the contract voidable at the instance of the other
party.

99. Reciprocal promises provide for doing certain things which are legal & certain
others which are illegal, under section 57

(a) The entire set of promises is void

(b) The first set is voidable, but the second set is void

(c) The first set is valid but the second set is void

(d) The entire set of promises is valid.

By Prof. Mayuree Tawade Page 20

100. A contract, performance of which becomes impossible or unlawful becomes

(a) Void when the performance becomes unlawful or impossible

(b) Void

(c) Voidable when the performance becomes impossible.

(d) Neither becomes void nor voidable

Extra Questions:

1.The Contract Act of 1872 was enacted on

A.25th April, 1872

B. 25th May, 1872

C. 25th June, 1872

D. None of above

2. The Contract Act, 1872 consists_____ sections

A.238

B. 248

C. 266

D. None of these

3. Definitions are provided in section_____ of The Contract Act

A.2

B. 3

C. 4

D. None of these

4. When one person signifies to another his willingness to do or to abstain from doing
anything with a view to obtaining the assent of that other person to such act or
abstinence he is said to make a

A. Proposal

B. Promise

C. Both (a) and (b)

D. None of these

By Prof. Mayuree Tawade Page 21

5. When the person to whom the proposal is made signifies his assent thereto the
proposal is said to be accepted than its called

A. Proposal

B. Promise

C. Agreement

D. None of these

By Prof. Mayuree Tawade Page 22

 MULTIPLE CHOICE QUESTIONS
(103)- (LEGAL ASPECT OF BUSINESS) CLASS M.B.A I YEAR
.

1. Indian Contract Act extends to the whole of India excepts to the state of?
a. Assam
b. Jammu & Kashmir
c. West Bengal
d. None of these
Ans: B
2. An agreement enforceable by law is called?
a. Void
b. Promise
c. Contract
d. All of these
Ans: C
3. Chapter I of the Indian Contract Act deals the ______ of proposals?
a. Communication
b. Revocation
c. Acceptance
d. All of these
Ans : D
4. In order to convert a proposal into a promise the acceptance must...?
a. Absolute
b. Unqualified
c. Absolute & Unqualified
d. None of these
Ans: C
5. Agreement means ________________.
a. Offer + acceptance
b. Offer + contract
c. Contract + acceptance
d. Enforceable by law
Ans:A
6. The two contracting parties must agree as regards the subject-matter of the
contract at the same time & in the same sense is called as __________.
a. personam
b. consensus-ad-idem
c. reciprocal promise
d. accepted proposal
Ans: B
7. Technical term of void contract is _________.
a. voidable contract
b. void-ab-initio
c. personam
d. void agreement
Ans: B
8. Communication of a proposal is complete when it comes to the knowledge of the person to
whom it s made.
a. True
b. Partly True
c. False
d. None of these
Ans: A
9. Incase of breach of contract of sale of some rarea article or thing for which there is no
substitue available in the market the court may grant-
a.Quantum Meruit
b.Rescission
c.Specific Performance
d. Injunction
Ans: C
10. _______ is one the object of which is unlawful.
a. Void contract
b. Wager
c. An illegal agreement
d. Voidable contract
Ans: C
11. A proposal, when accepted becomes a ________.
a. promise
b. contract
c. offer
d. consensus
Ans: A
12. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
13. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
a. wagering contract
b. bilateral contract
c. illegal contract
d. unenforceable contract
Ans: B
14. Promises which form the consideration or part of the consideration for each other is
called as __________.
a. reciprocal promise
b. reciprocal offer
c. reciprocal performance
d. consideration
Ans:A
15. If any parties to the contract refuses or fails to perform his part of the contract or by
his act makes it impossible to perform his obligation under the contract, it is called
as _________.
a. breach of contract
b. void contract
c. tender
d. novation
Ans:A
16. A Quasi- contract under Indian Contract Act
a. Is an agreement
b. Is a contract
c. Has on a legal obligation
d. None of these
Ans: C
17. A contingent contract dependent on the non happening of specified uncertain event within
fixed time can be enforced if the event __
a. Does not happen within a fixed time
b. Becomes impossible before the expiry of the fixed time
c. Happens within a fixed time
d. Both (a) & (b)
Ans: D
18. An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Ans:A
19. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B
20. Substitution of a new contract for the original contract is called as ______.
a. novation
b. rescission
c. alteration
d. remission
Ans:A
21. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
22. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B

23. The court order to restrain a person not to do a particular activity is called as
 ________.
a. quantum meruit
b. specific performance
c. injuction
d. novation
Ans:C
24. Coercion involves the usage of _________.
a. fraud
b. misrepresentation
c. undue influence
d. all the above
Ans:D
25. A contract which arises on the basis of coercion is called as _________.
a. void contract
b. voidable contract
c. illegal contract
a. lawful contract
Ans:A
26. A contingent contract is ____________ contract.
a. Void
b. Voidable
c. Valid
d. Illegal
Ans:C
27. Damages which may reasonably be supposed to have been in the contemplation of
both parties as he probable result of the breach of a contract is known as ________.
a. ordinary damages
b. special damages
c. vindictive damages
d. nominal damages
Ans:B
28. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
29.Vindictive Damages have been awarded-
a. for a breach of promise to marry
b. for a wrongful dishonour of a cheque by banker processing adequate funds of the customer
c. Either (1) OR (2)
d. Both (1) and (2)
30. An Executary Consideration is-
a. Consideration promised by an executive of a company
b. consideration which consists simply of a mutual exchange of promise each being the
consideration for the other.
c. consideration which should be executed on a future date
d. consideration which should be executed before the court
Ans: C
31. When a person signifies to another his willingness to do or to abstain from doing anything
with a view to obtaining the assent of that other to such act or abstinence-
he is said to-
a. enter into a contract
b. make a proposal
c.accept an offer
d. create legal obligation
Ans: B
32. An agreeement to agree in future is
a. valid
b. voidable
c. invalid.
d. illegal
Ans: C
33. An agreement entered into with free consent and lawful but inadequate consideration is--
a. valid
b. voidable
c. invalid.
d. illegal
Ans: A
34. A minor's estate is liable for the ______ supplied to him
a. Luxuries
b. Necessities
c. Necessaries
d. All of these
Ans: C
35.The aggrieved party in breach of contract has not suffered any loss by reason of the
breach of contract, the damages recoverable by him is ________.
a. payment of interest
b. ordinary damages
c. special damages
d. nominal damages
Ans:D
36. If time is the essence of a contract and the promisor fails to perform the contract by the
specified time, the contract:
a. remains valid
b. becomes void
c. becomes unorceable
d. becomes voidable at the instance of the promise
Ans: D
37. __________ damages are measured on the basis of extent of shock to the sentiments of the
promisee
a. Vindictive
b. Nominal
c. Loss of reputation
d. Discomfort
Ans: A

38. There are _________ ways for actual breach of contract.

a. 1
b. 2
c. 3
d. 4
Answer:B
 39. The technical term “Quantum Meruit” denotes ____________.
a. performance of a contract
b. quantity involved in contract
c. suit for specific performance
d. as much as earned
Answer:D
40. Law of quasi-contract is also known as ________.
a. Law of returns
b. Law of restitution
c. Law of repudiation
d. Law of contract
Ans: B
41. The contract of General Insurance is--
a. Contingent
b. Voidable
c. Valid
d. None of these
Ans: A
42. ___________ means intentional relinquishment of a right under the contract
a. waiver
b. wager
c. alteration
d. rescission
Ans:A
43. Termination of contractual relations between the parties to a contract is called as
________ .
a. performance of contract
b. discharge of contract
c. winding up of contract
d. none of the above
Ans:B
44. ____________ means passing over rights and liabilities from one person to another
person.
a. Devolution
b. Endorsement
c. Passing the buck
d. Escapism
Ans:A
45.An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Answer:A
46. Responsibility of finder of goods under contract is __________.
a. indemnifier
b. bailee
c. owner
d. despatcher
Ans:B
47. A person who finds goods belonging to another and takes them into his custody, is
subject to the same responsibility as a ________________.
a. bailee.
b. true owner .
c. thief.
d. agent.
Ans:A
48. A finder of lost goods is a _____________.
a. bailer.
b. bailee.
c. true owner.
d. thief.
Ans:B
49. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A
50. The position of finder of lost goods is that of a ___________.
a.Bailer .
b.Bailee.
c.Surety.
d.Principal debtor.
Ans: B
51. A gratuitous bailee is liable for defects in the goods bailed __________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases.
d. in particular case.
Ans:B
52.A gratuitous bailment is one which is _____________.
a. supported by consideration
b. not Supported by consideration
c. not enforced by law
d. void
Ans:B
53. According to Sale of Goods Act, 1930, “Seller” means a person
a. Who only agrees to sell the goods
b. Who only sells the goods
c. Who sells or agrees to sell the goods
d. None of these
Ans: C
54. A bailee has___________.

a. a right of particular lien over the good bailed.

b. a right of general lien.

c. a right of both particular and general lien.

d. no lien at all over the goods bailed.

Ans:A
 55. In sale, if the goods are destroyed, the loss falls on _____________.

a. the buyer.

b. the seller.

c. partly on the buyer and partly on the seller.

d. third party.

Ans:A

56. If sale is by sample as well as by description, the implied condition is that the goods

shall correspond with ____________.

a. sample.

b. description.

c. both sample and description.

d. either sample or description.

Ans:C

57. In a sale, there is an implied condition on the part of seller that he __________.

a. has right to sell the goods.

b. is in position of the goods.

c. will have the right sell.

d. will not have the right to resell.

Ans:A

58. A condition is a stipulation which is____________.

a. essential to the main purpose of contract of sale.

b. not essential to the main purpose of the contract of sale.

c. collateral to the main purpose of contract of sale.

d. additional security.

Ans:A

59. ' Contract of Sale' under Sale of Goods Act, 1930, comprises of contracts which are,
a. Executory
b. Concluded
c. Both executory and executed
d None of these
Ans: C
60. In a contract of sale of goods the implied condition of wholesomeness applies to---
a. Medicines
b. Eatables
c. Cloth
d. Computers
Ans: B

61. The consideration in a contract of Sale is called--

a. Price
b. Exchange Money
c. Barter Money
d. Rewards
Ans:A
62. When a breach of condition is treated as a breach of warranty, the buyer cac--
a. Repudiate the contract
b. Reject the goods
c. Claim damages
d. None of these
Ams: C
63. The main objective of a contract of sale is ______________.

a. transfer of possessing of goods.

b.transfer of property in goods from seller to buyer.

c. delivery of goods.

d. payment of price.

Ans:B

64. When there is a contract for the sale of unascertained goods, the property in

goods___________.

a. passes when the buyer pays the price.

b. does not pass until the goods are ascertained.

c. when the contract is entered into.

d. when the buyer accepts the goods.

Ans:B

65. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
a. accept the whole.

b. reject the whole.

c. accept the goods ordered for and can return the excess quantity.

d. either a or c

Ans:D

66. The lien of an unpaid seller depends on _____________.

a. possession.

b. title.

c. ownership.

d. possession and ownership.

Ans:A

67. An unpaid seller can excises the right of stoppage in transit when the carrier holds the

goods ____________.

a. as sellers agent.

b. as buyer s agent.

c. as agent of both of them.

d. in his own name.

Ans:D

68. The sale of goods act, 1930 deals with _________.

a. movable goods only.

b. immovable goods only.

c. both movable and immovable goods.

d. all goods except ornaments.

Ans:A

69. The term, ‘goods’ for the purpose of sale of goods act does not include _________.

a. money.
b. actionable claims.

c. immovable property.

d. all the above.

Ans:B

70.A contract for the sale of ‘furniture goods’ is_____________.

a. sale.

b. agreement to sell.

c. void.

d. voidable.

Ans:B

71. ___________ gives the buyer only a right to claim damages.

a. Condition.

b. Guarantee.

c. Warranty.

d. Indemnity.

Ans:C

72. Which of the following is not an implied condition in a contract of sale _________.

a. condition as to title.

b. condition as to description.

c. condition as to freedom from the encumbrance.

d. condition as to a sample.

Ans:C

73. A contract of sale may be __________.

a. absolute only.

b. condition only.

c. absolute and conditional.

d. indemnity.

Ans:C

74. S and P gets into a shop. S says to the shopkeeper C “let P have the goods, and if he

does not pay you, I will”. “This is a __________.

a.contract of guarantee.

b.contract of indemnity.

c.wagering contract.

d.quasi-contract.

Ans:A

75. A bailment is usually created by agreement between ______________.

a. the principal & the agent.

b. the contracted parties.

c. the bailer & the bailee.

d. the guaranteed & parties.

Ans: C.

76. The gratuitous bailer is liable to bailee for the defects in the goods bailed

___________.

a. even if he is not aware of them.

b. only if he is aware of them.

c. in all cases of loss.

d. in certain case of loss.

Ans:B

77.The term 'property' as used in the Sale of Goods Act, 1930 means_____________

a. possession.

b. ownership.

c. both ownership and possession.

d. the subject matter of contract of sale.

Ans:B

78.The term “contract to sale” is a generic term which includes both __________ .

a. sale & an agreement to sell.

b. contract & agreement.

c. possession & Ownership of goods.

d. transfer to ownership & possession.

Ans: A

79. _________ form the subject of a contract of sale.

a. Assets.

b. Consideration

c. Goods.

d. Agreement to sell.

Ans: C

80. There is a constructive delivery of goods_____________.

a. When the seller hands over to the buyer the key of the warehouse where the goods are

lying.

b. When a third person in possession of the goods acknowledged to the buyer that he

holds them on his behalf.

c. When the seller physically delivers the goods to the buyers.

d. When the seller asks the buyer to take delivery of the goods.

Ans:B
81.Where there is no specific agreement as to place, the goods sold are to be delivered

at the place______________.

a. at which they are at the time of sale.

b. of the buyer.

c. desired by the buyer.

d. to be determined by the seller.

Ans:A
82. An implied warranty or condition as to quality or fitness for a particular purpose may

be annexed by the usage of ________.

a. trade.

b. goods.

c. commerce.

d. agreement to sell.

Ans: A

83. __________ is an illicit act dissuading the intending purchase r from bidding.

a. Withholding the goods.

b. Damping.

c. Knockout.

d. Repudiation.

Ans: B

84. Where there is an unconditional contract for the sale of specific goods in a

deliverable state, the property in the goods passes to the buyer when ______________.

a. the goods are delivered to the buyer.

b. the price is paid by the buyer.

c. the contract is made.

d. the buyer accepts the good.

Ans:C

85. ___________ is a contract in which the terms are started in words (Written or
Spoken) by the parties.

a. Express contract.

b. Implied contract.

c. Executed contract.

d. Executory contract.

Ans: A

86. The doctrine of caveat emptor applies______________

a.in case of implied conditions and warranties.

b.when the buyer does not intimate the purpose to the seller and depends upon his own

skill and judgment.

c.when goods are sold by sample.

d.when goods are sold by description.

Ans:A

87. “A” who purchases certain goods from B by a misrepresentation and pledges them

with “C”. The pledge is _____________.

a. valid.

b. void.

c. voidable.

d. invalid.

Ans:B

88. In a hire – purchase agreement, the hirer ____________.

a. has an option to buy the goods.

b. must but the goods.

c. must return the goods.

d. is not given the possession of the goods.

Ans:A
 89. ____________ means competency of the parties to enter into a valid contract.

a. Solvency.

b. Capacity.

c. Consequences.

d. Position.

Ans: B

90. The measure of damages in case of breach of a contract is the difference between the

___________.

a. contract price and the market price at the date of breach.

b. contract price and the maximum market price during the terms of contract.

c. contract price and the price at which the plaintiff might have sold the goods.

d. contract price and the price fixed by the court.

Ans:A

91. Technical term of contract without consideration is called as ________ .

a. nadum pactum.

b. void – ad-initio.

c. consensus –ad-idem

d. caveat emptor.

Ans: A

92. Mr. A, a tradesman, leaves goods at Mr. B’s house by mistake. Mr. B treats the goods

as his own. He is bound to pay for Mr.A. This is an example for obligation to pay for

________.

a. non-gratuitous act

b. gratuitous act

c. coercion
d. quantum meruit

Ans:A

93. Where the buyer wrongfully refuses to aceept the goods, the seller may recover the damages
a. for the reasonable charges for the care and the custody of goods
b. for the loss caused by the non accepatnce of goods
c. either (a) OR (b)
d. both (a) AND (b)
Ans: D
94. Under the Sale of Goods Act 1930, the existing goods are classified as
a. Specified Goods
b. Ascertained Goods
c. Unascertained Goods
d. All of the above
Ans: D
95. Following is not a document of title
a. railway receipt
b. bill of lading
c. dock of warrant
d. None of these
Ans: D
96. When the terms of the contract of sale of goods are such that by reserving the right of
disposal, the seller commits a breach of contract, and the goods appropriated to the contract does
not cause the property in goods to pass to the buyer. It is--
a. Partly True
b. True
c. False
d. None of these
Ans: B
97. When the seller exercises right of lien or right of stoppage of goods in transit and gives
notice to the buyer for payment and the buyer does not pay or tender within reasonable time , an
unpaid seller can--
a. re-sale the goods
b. cannot re-sale the goods
c. ask again to the buyer
d. take possesion and mark the good as bad
Ans: A

98. Ignorance of law is _____________.

a. an excuse

b. not an excuse

c. punishment

d. offence

Ans:B
 99. ‘A’ permits a coolie to put his luggage to a carriage. The contract comes into

existence as soon as the coolie puts the luggage. So ‘A’ has only to fulfill his part.

This is an example for __________.

a. unilateral contract

b. bilateral contract

c. implied contract

d. executed contract

Ans:A

100. “A person should not be allowed to enrich himself unjustly at the expense of

another” is the principle of ____________.

a. contingent contract

b. wagering contract

c. quasi contract

d. void contract

Ans:C
1.An agreement consists of reciprocal promises between at least

(a) four parties.

(b) six parties.

(c) three parties.

(d) two parties.

Answer – d

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

(a) contract.

(b) agreement.

(c) offer.

(d) acceptance.

Answer – b

3. Contract is defined as an agreement enforceable by law, vide Section … of the Indian

Contract Act.

(a) Section 2(e)

(b) Section 2(f)

(c) Section 2(h)

(d) Section 2(i)

Answer – c

4. In agreements of a purely domestic nature, the intention of the parties to create legal
relationship is

(a) to be proved to the satisfaction of the court.

(b) presumed to exist.

(c) required to the extent of consideration.

(d) not relevant at all.

Answer -a

5. A makes a contract with B to beat his business competitor. This is an example of

(a) valid contract.

(b) illegal agreement.

(c) voidable contract.

(d) unenforceable contract

Answer – b

6. Which of the following legal statement is incorrect?

(a) An agreement enforceable by law is a contract [Section 2]

(b) All agreements are contracts [Section 10]

(c) A proposal when accepted becomes a promise [Section 2]

(d) Every promise and every set of promise forming the consideration for each other is an
agreement [Section 2(e)]

Answer – a

7. Agreement the meaning of which is uncertain is

(a) Void

(b) Valid

(c) Voidable

(d) Illegal Answer:

Answer – a

8. …………….. is a one-sided contract in which only one party has to perform his promise
or obligation.
(a) Void contract

(b) Illegal agreement

(c) Unilateral contract

(d) Bilateral contract

Answer – c

9. All Contract is a/an ……………..

(a) Offer

(b) Agreement

(c) Acceptance

(d) Transaction

Answer – b

10. A/an …………… is every Promise and every set of promises , forming consideration
for each other
(a) Offer

(b) Agreement

(c) Acceptance

(d) Transaction

Answer – b

11. Every agreement and promise enforceable by law is …………….

(a) Offer

(b) Contract

(c) Acceptance

(d) Consideration

Answer – b

12. As per section 2(e) of the Indian Contract Act, “Every Promise and every set of promise
forming the consideration for each other is a/an
(a) Contract
(b) Agreement
(c) Offer
(d) Acceptance

Answer – b
13. A promises to deliver his watch to B and, in return, B Promise to pay a sum of ` 2,000.
There is said to be a/ an
(a) Agreement
(b) Proposal
(c) Acceptance
(d) Offer

Answer – a

14. For an acceptance to be valid, it must be

(a) Partial & qualified

(b) Absolute & unqualified
(c) Partial & unqualified
(d) Absolute & qualified

Answer – b

15. Which of the following is false? An offer to be Valid must

(a) Contain a term the non- compliance of which would amount to acceptance.
(b) Intend to create legal relations.
(c) Have certain and unambiguous terms.
(d) Be communicated to the person to whom it is made.

Answer – a

16. Over a cup of coffee in a restaurant, X Invites Y to dinner at his house on a Sunday. Y
hires a taxi and reaches X’s house at the appointed time , but x fails to perform his
promise. Can Y recover any damages from X?
(a) Yes, as y has suffered
(b) No, as the intention was not to create legal relation.
(c) Either (a) or (b)
(d) None of these.

Answer – b

17. Which one of the following has the correct sequence.

(a) Offer, acceptance, consideration, offer.
(b) Offer, acceptance , consideration, contract
(c) Contract, acceptance, consideration, offer.
(d) Offer, consideration, acceptance, contract.

Answer – b
18. 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.

Answer – a

19. 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

Answer – a

20. An offer is revoked

(a) By the death or insanity of the proposer
(b) By Lapse of time
(c) By Communication of notice of revocation
(d) All of these

Answer -d

21. An acceptance on telephone should be

(a) Heard by the offeror
(b) Audible to the offeror
(c) Understood by the offeror
(d) All of the above.

Answer -d

22. Consideration in a contract:

(a) May be past, present or future
(b) May be present or future only
(c) Must be present only (d)
(d) Must be future only.

Answer -a

23. Agreement without consideration is valid, when made

(a) Out of love and affection due to near relationship

(b) To pay a time barred debt
(c) To compensate a person who has already done something voluntarily
(d) All of the above

Answer – d

24. If only a part of the consideration or object is unlawful, the Contract is

(a) Valid to the extent the same are lawful
(b) Void to the extent the same are unlawful
(c) Valid as a whole
(d) Void as a whole.

Answer d

25. The expression “Privity of contract” means

(a) A Contract is Contract between the parties only
(b) A Contract is a private document
(c) Only private documents can be contracts
(d) The contacts may be expressed in some usual and reasonable manner.

Answer -a

26. Under the Indian Contract Act, a third person

(a) Who is the beneficiary under the Contract can sue
(b) From whom the consideration has proceeded can sue
(c) Can not sue even if the consideration has proceeded from him.
(d) Can not sue at all for want of privity of contract.

Answer a

27. Which of the following is not Competent to Contract?

(a) A minor
(b) A person of unsound mind
(c) A person who has been disqualified from contracting by some Law
(d) All of these

Answer – d

28. “ Consensus – ad – idem” means ………

(a) General Consensus
(b) Meeting of minds upon the same thing in the same sense
(c) Reaching an agreement
(d) Reaching of contract

Answer -b
29. A Contract which is formed without the free consent of parties, is ……….
(a) Valid
(b) Illegal
(c) Voidable
(d) Void ab- initio

Answer -c

30. If an agreement suffers from any uncertainty. It is ………….

(a) Voidable
(b) Void
(c) Unenforceable
(d) Illegal.

Answer – b

31. All illegal agreements are ………….

(a) Void- ab- initio
(b) Valid
(c) Contingent
(d) Enforceable

Answer -a

32. A promise to give money or money’s worth upon the determination or ascertainment of
an uncertain event is called …………..
(a) Wagering Agreement
(b) Unlawful Agreement
(c) Illegal Agreement
(d) Voidable Agreement

Answer -a

33. A Contingent Contract is a contract to do, or not to do something if some event,

collateral to such contract
(a) happens
(b) does not happen
(c) Neither (a) nor (b)
(d) Either (a) or (b)

Answer -b

34. The phrase “Quantum Meruit” literally means –

(a) As much as is earned
(b) The fact in itself
(c) A Contract for the sale
(d) As much as is gained.

Answer – a

35. Which of the following is the essential ingredient of contract of indemnity:

(a) Contract to make good the loss
(b) Loss must be caused to the indemnity holder.
(c) Loss may be caused by promiser or any other person
(d) All of the above.

Answer -d

36. How agency is created:

(a) By Direct appointment
(b) By implication
(c) By necessity
(d) All of the above

Answer -d

37. An agreement which is enforceable by law at the option of one party

(a) Valid contract
(b) Void contract
(c) Voidable contract
(d) Illegal contract

Answer -c

38. A Gratuitous Promise can

(a) Be enforced
(b) Not be enforced
(c) Be enforced in court of law
(d) None of above

Answer -b

39. If A makes an offer to B on a particular day, then the offer can be revoked by A before

(a) B accepts the offer

(b) A receives B’s acceptance
(c) B has posted the letter of acceptance
(d) Reasonable period of time

Answer – c
40. The two types of breach are
(a) Actual breach and Deemed breach
(b) Actual breach and Conditional breach
(c) Actual breach and Anticipatory breach
(d) Actual breach and Remedial breach

Answer –c

1. Person named in the instrument to whom money is directed to be paid is known as

_______________.

a) Drawer

b) Acceptor

c) Maker

d) Payee

Ans D

2. Maker of a bill of exchange is called as ____________

a) Drawer

b) Drawee

c) Acceptor

d) Payee

Ans A

3. Days of grace provided to the Instruments at maturity is _______________

a) 1 day

b) 2 days

c) 3 days

d) 5 days

Ans C
4. Parties to a negotiable instrument can be discharged from liability by ______________

a) Cancellation

b) Payment

c) Release

d) All of the above

Ans D

5. Validity period for the presentment of cheque in bank is _______________

a) 3 months

b) 6 months

c) 1 year

d) 2 years

Ans A

6. Offences committed under the Negotiable Instruments Act can be _______________

a) Compoundable

b) Non-compoundable

c) Non-compoundable and non-bailable

d) Bailable

Ans A

7. A negotiable instrument that is payable to order can be transferred by:

a) Simple delivery

b) endorsement and delivery

c) endorsement

d) registered post
Ans B

8. A negotiable instrument drawn in favour of minor is

a) Void

b) Void but enforceable

c) Valid

d) None of these

Ans C

9. Which of the following is not applicable to negotiable instruments?

a) It must be in writing

b) It must be transferable

c) It must be registered

d) It must be signed

Ans C

10. ‘A’ signs the instrument in the following manner. State the instrument which cannot be
considered as promissory note.

a) I promise to pay B or order INR 500.

b) I acknowledge myself to be indebted to B for INR 1,000 to be paid on demand for value
received.

c) I promise to pay B INR 10,000 after three months.

d) I promise to pay B INR 500 seven days after my marriage with C.

Ans D

11. A promissory note drawn jointly by X, a minor and Y, a major is:

a) Void

b) Valid but not negotiable

c) Valid but can be enforced only against Y

d) None of the above

Ans C

12. In legal terms, person who takes the instruments bonafide for value before it is overdue, in
good faith, is known

as:

a) Holder in due course

b) Holder

c) Holder for value

d) None of the above

Ans A

13. P obtains a cheque drawn by M by way of gift. Here P is a:

a) Holder in due course

b) Holder for value

c) Holder

d) None of the above

Ans C

14. As per the Negotiable Instruments Act, 1881, when the day on which a promissory note or
bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on
the …….……..

a) said public holiday

b) 5 days succeeding public holiday

c) next succeeding business day

d) next preceding business day

Ans D
15. Person named in the instrument to whom money is directed to be paid:

a) Drawer

b) Acceptor

c) Maker

d) Payee

Ans D

16. A draws a cheque in favour of M, a minor. M endorses the same in favour of X. The cheque
is dishonoured by the bank on grounds of inadequate funds. As per the provisions of Negotiable
Instruments Act, 1881:

a) M is liable to X

b) X can proceed against A

c) No one is liable in this case

d) M can proceed against A

Ans B

17. While drawing a bill of exchange, a person whose name is given in addition to the drawee
who can be resorted in case of need, is called _____________________.

a. Acceptor

b. Acceptor for honour

c. Drawee in case of need

d. Drawer

Ans C

18. A draws a bill on B. B accepts the bill without any consideration. The bill is transferred to C
without consideration. C transferred it to D for value. Decide as per provisions of Negotiable
Instruments Act, 1881-

a. D can sue only A

b. D can sue A or B only

c. D can sue any of the parties A, B or C

d. D cannot sue any of the parties A, B or C

Ans C

19. The date of maturity of a bill payable hundred days after sight and which is presented for
sight on 4th May, 2017, is (as per the provisions of the Negotiable Instruments Act, 1881):

a. 13 August, 2017

b. 14 August, 2017

c. 15 August, 2017

d. 16 August, 2017

Ans B

20. A draws a bill on B for INR 500 payable to the order of A. B accepts the bill, but
subsequently dishonour it by non – payment. A sues B on the bill but B proves that it was
accepted for value as to INR 400, and as an accommodation to the plaintiff as to the residue.
Thus, as per the provisions of the Negotiable Instruments Act, 1881, A can only recover the
following amount:

a. 900

b. 500

c. 400

d. 100

Ans C

21. An instrument containing a promise to __________ is valid promissory note.

a. Pay Rs. 10 lakhs

b. Deliver certain goods

c. Pay Rs. 10 lakh and deliver certain goods

d. Both (a) and (c)

Ans A
22. In case on an accepted bill, the liability of drawer is __________

a. Primary and unconditional

b. Primary and conditional

c. Secondary and conditional

d. Secondary and unconditional

Ans C

23. Until the bill is accepted, the liability of drawer is __________.

a. Primary and unconditional

b. Primary and conditional

c. Secondary and conditional

d. Secondary and unconditional

Ans B

24. Until the bill is accepted, the liability of drawee is __________.

a. Primary and unconditional

b. Primary and conditional

c. Secondary and conditional

d. None of these

Ans D

25. In case of an accepted bill, the liability of drawee is __________

a. Primary and unconditional

b. Primary and conditional

c. Secondary and conditional

d. None of these
Ans A

Q.1. Where a promisor has made an offer of performance to the promisee and the offer has not
been accepted:

A The promisor is responsible for non-performance, but he does not lose his rights under the
contract

B The promisor is not responsible for non-performance, nor does he thereby lose his rights under
the contract

C The promisor is not responsible for non-performance, but he loses his rights under

the contract

D The promisor can enforce the performance of the promise

Q.2. If it appears from the nature of the case that it was the intention of the parties to any contract
that any promise contained in it should be performed by the promisor himself:

A The promisor may employ any other person who is party to the contract to perform the
promise

B Any relative of the promisor may perform the promise on behalf of the promisor

C Must be performed by the promisor himself

D Any person who is not a party to a contract may perform the promise

Q.3. When two or more persons have made a joint promise, then, unless a contrary intention
appears from the contract, all such persons must fulfil the promise:

A Jointly

B Severally

C Jointly or severally

D Jointly and severally

Q.4. Where two or more persons have made a joint promise, a release of one of such joint
promisors by the promise:

A does not discharge the other joint promisor, neither does it free the joint promisor so released
from responsibility to the other joint promisor or joint promisors
B discharges the other joint promisor but it does not free the joint promisor so released from
responsibility to the other joint promisor or joint promisors

C discharges the other joint promisor also frees the joint promisor so released from responsibility
to the other joint promisor or joint promisors

D release of one of such joint promisors is not possible

Q.5. Where a contract consists of reciprocal promises and such reciprocal promises are to be
simultaneously performed:

A Promisor need not perform his part of promise at all

B Promisor need not perform his part of promise unless promisee is ready and willing to perform
his reciprocal promise

C Promisor has to compel promisee to perform his promise first

D There is no valid contract at all

Q.6. When a party to a contract fails to perform a contract within the fixed time:

A Such contract remains valid provided the promise is fulfilled whether at the time of
performance or later

B Such a contract becomes void

C Such contract becomes voidable at the option of the promise, if the intention of the parties was
that time should be of essence of the contract

D Such a contract becomes voidable at the option of the promisor or promise and the intention of
the parties does not matter

Q.7. Agreement to do an impossible act is:

A Voidable at the option of the promisor

B Void

C Valid

D Voidable at the option of the promise

Q.8. 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:
A the first set of promise is a contract, but the second is a void agreement

B The entire contract is void

C The entire contract is valid

D The entire contract is voidable

Q.9. In case of breach of contract of sale of some rare article or thing for which there is no
substitute in the market, the Court may grant:

A Quantum Meruit

B Rescission

C Injunction

D Specific Performance

Q.10. What is the obligation of a person who has received advantage under void agreement:

A He can retain the advantage received with the prior approval of the person from whom he
received it

B He can retain the advantage received without any prior permission from anyone

C He is bound to restore it or make compensation for it to the person from whom he received it

D He is bound to restore it or make compensation for it only when a Court order is passed in this
behalf

Q.11. If a person who is incapable of entering into a contract is supplied with necessaries by
another person, then the latter shall:

A Be reimbursed for such supplies by a relative of the incapable person and that relative must be
capable of contracting

B Be reimbursed for such supplies from the property of such incapable person

C Be reimbursed for such supplies from the property of such incapable person

D Not entitled to be reimbursed at all

Q.12. What is the responsibility of the finder of goods:

A Same responsibility as a bailee.

B Same responsibility as a trustee

C Same responsibility as a pledgee

D Same responsibility as the owner

Q.13. What is the meaning of novation:

A Rescinding of a contract

B Alteration of a contract

C Change in provisions of a contract

D Substituting an old contract for a new one

Q.14. X owes Rs. 10,000 to Y under a contract. It is agreed between X, Y & Z that Y shall
henceforth accept Z as his debtor instead of X for the same amount. Old debt of X is discharged
and a new debt from Z to Y is contracted. This is:

A Alteration of contract

B Rescission of contract

C Novation of contract

D Change in contract

Q.15. When a contract is breached, the party who suffers such breach shall:

A Be indemnified for the loss or damage caused to him

B Receive compensation for any loss or damage caused to him

C Be remunerated for the loss or damage caused to him

D Not have any right under this Act

Q.16. What is contract of indemnity:

A A contract by which one party promises to save any third party from loss caused to that party
by the contract of the promisor himself, or by the conduct of any other person

B A contract by which one party promises to provide insurance to the other in order to cover up
any losses that may arise in the contract
C A contract by which one party promises to save the other from loss caused to him by the
contract of the promisor himself, or by the conduct of any other person

D A contract in which one party appoints a guarantor to cover up any losses that may arise in the
contract

Q.17. The correct sequence in formation of a contract is:

A Offer, acceptance, consideration, agreement

B Offer, Consideration, acceptance, agreement

C Agreement, consideration, offer, acceptance

D Offer, acceptance, agreement, consideration

Q.18. Which of these contracts has three parties consisting of creditor, principle debtor and
surety:

A Contract of indemnity

B Contract of surety

C Contract of pledge

D Contract of guarantee

Q.19. What is a continuing guarantee:

A A guarantee which continues even after the contract comes to an end

B A guarantee which shall be applicable to any other person who becomes a party to the contract

C A guarantee which extends to a series of transaction

D A guarantee which continues till the contract does not come to an end

Q.20. What happens to a continuing guarantee in case of surety’s death:

A Indemnification from the property of the surety with regard to future transactions

B Revocation of the continuing guarantee with regard to future transactions

C The continuing guarantee shall continue in the name of the surety’s heirs

D The continuing guarantee shall be continued by any other person

Q.21. Any guarantee which the creditor has obtained by means of keeping silence as to material
circumstances is:

A valid

B considered to be his approval

C invalid

D considered to be his denial

Q.22. X transfers possession or custody of the farmland to his son, S. S shall pay rent or a lease
fee in return. S only receives custody and control of the property, but X still owns it. X is thus
responsible for paying the property taxes and is liable for what happens on the land. This kind of
contract or arrangement is called:

A Guarantee

B Bailment

C Pledge

D Set off

Q.23. What is pledge:

A The bailment of goods as security for payment of a debt or performance of a promise

B The delivery of goods by one person to another for some purpose, upon a contract that they
shall, when the purpose is accomplished, be returned or otherwise disposed of according to the
direction of the person delivering them

C A contract by which one party promises to save the other from loss caused to him by the
contract of the promisor himself, or by the conduct of any other person

D a contract to do or not to do something, if some event, collateral to such contract, does or does
not happen

Q.24. Where a person pledges goods in which he has only a limited interest, the pledge

is:

A Invalid to the extent of that interest

B Entire contract is invalid

C Valid to the extent of that interest

D Entire contract is valid

Q.25. What is the minimum consideration required to create an agency?

A Minimum of Rupees One Lakh

B Minimum of Rupees One Thousand

C No consideration at all is required

D Minimum of Rupees Ten Thousand

1. B
2. C
3. D
4. A
5. B
6. C
7. B
8. A
9. D
10. C
11. B
12. A
13. D
14. C
15. B
16. C
17. A
18. D
19. C
20. B
21. C
22. B
23. A
24. C
25. C

1. Condition is a stipulation which is

A. Essential to the main purpose of contract
B. Collateral to the main purpose of contract
C. Not essential to the main purpose of contract
D. Collateral to the main purpose of contract
Ans: A
2. The sale of goods Act deals only with goods which are ______________ in nature
A. Immovable
B. Movable
C. Specific
D. All of the above
Ans: B
3. Goods that are identified at the time of contract of sale is called ________________ goods
A. Specific Goods
B. ascertained goods
C. clear Goods
D. both a & b
Ans: D
4. _________________ is a Stipulation which is Collateral to purpose of contract
A. Condition
B. Warranty
C. Guaranty
D. Collateral Contract
Ans: B
5. __________________________ is the concept of “LET THE BUYER BEWARE”.
A. Information Center
B. Unfair Trade Practices
C. Caveat Emptor
D. Buyer Kingdom
Ans: C.
6. ___________________ and _______________ are the two parties involved in Contract of sale
A. Seller & Buyer
B. Agent & Principle
C. Customer & Sales man
D. Customer and supplier
Ans: A
7. It is a standard rule that risk follows ____________________
A. Seller
B. buyer
C. property
D. Possession
Ans: C.
8. The sale of Goods Act enforces in the year
A. 1935
B. 1930
C. 1945
D. 1955
Ans: B
9. The subject matter of the contract under Sale of goods Act must be
A. Money
B. Goods
C. Immovable Goods
D. All of the above
Ans: B
10. Sale under Sale of goods Act is a/an ____________________ contract
A. Executory
B. Executable
C. Executed
D. None of the above
Ans: C.
11. In sale the transfer of property in goods from the seller to the buyer takes place
A. At the end of contract
B. Immediately
C. In a future Date
D. Both a&b
Ans: D
12. In Agreement to sell the transfer of property in goods from the seller to the buyer takes place
A. At the end of contract
B. Immediately
C. In a future Date
D. Both b&c
Ans: C.
13. Which of the following is not a subject matter in a Sale of goods Act
A. Trade mark
B. Good will
C. Money
D. Water
Ans: C.
14. As per Sale of goods Act Movable goods does not include
A. Gas
B. Growing crop
C. Electricity
D. Money
Ans: D
15.The goods must be ________ goods for transferring the property in the goods
A. Ascertained
B. Unascertained
C. Future
D. All of the above
Ans: A
16. The subject matter of the contract must necessarily be _____________
A. Sale
B. Product
C. Service
D. Goods
Ans: A
17. A consideration in contract of sale must be ______________ only
A. Goods
B. movable only
C. price
D. Purchase
Ans: C.
18. Transfer or agree to transfer the _____________ of the goods is the purpose of sale of goods
Act
A. Property
B. Possession
C. Value
D. Usage
Ans: B
19. A sale is a ______________ contract
A. Implied
B. Executed
C. Agreed
D. Executory
Ans: B
20. An agreement to sell is a ______________ contract
A. Implied
B. Executed
C. Agreed
D. Executory
Ans: D
21. A sale is said to be completed when ___________ is transferred from one party to the other
party
A. Money
B. Goods
C. Interest
D. Ownership
Ans: D
22. In contract of sale the payment of price is __________ to the transfer of property in goods
A. concurrent
B. important
C. mandatory
D. immaterial
Ans: D
23. An agreement to sell will become a sale in _______________
A. Future date
B. immediate effect
C. 30 days
D. None of the above
Ans: A
24. An agreement to sell the transfer of ownership is ___________
A. Definite
B. Mandatory
C. Conditional
D. immaterial
Ans: C.
25. A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the
property in goods to the buyer for ___________
A. price
B. interest
C. credit
D. value
Ans: A
26. In sale in case of loss of goods, the loss will fall on the _____________
A. offeror
B. buyer
C. seller
D. surety
Ans: B
27. In sale after the sale is done, the goods are in the possession of the seller, , in case of loss of
goods, the loss will fall on the _________
A. offeror
B. buyer
C. seller
D. surety
Ans: B
28. A sold his laptop to B, but for some repairing purpose A retained the laptop with him. The
laptop is stolen by C , in this case the loss will fall on
A. B
B. C
C. A
D. None of them
Ans: A
29. In case of Sale the risk is associated with___________________
A. money
B. goods
C. ownership
D. possession
Ans: C.
30. In case of sale the seller can sue the buyer for _________ in case of breach
A. damages
B. price
C. interest
D. fraud
Ans: B
31. In case of agreement to sell the seller can sue the buyer for _________ in case of breach
A. damages
B. price
C. interest
D. fraud
Ans: C.
32. ‘Goods’ means every kind of __________________ property
A. sellable
B. immovable
C. existing
D. movable
Ans: D
33. Which of the below said is not included in goods as per Sale of goods Act 1930
A. forming part of the land
B. stocks
C. Actionable claims
D. crop
Ans: C.
34. __________ cannot be a subject matter of Sale of goods
A. Gas
B. Electricity
C. Money
D. All of the above
(Ans: C.
35. ___________________ can be a subject matter of sale of goods Act
A. Trademark
B. patent
C. goodwill
D. All of the above
Ans: D
36. Existing goods can be classified as
A. Ascertained
B. Generic
C. both a & b
D. Nor a neither b
Ans: C.
37. Ascertained goods is otherwise called as _______________ goods
A. specific
B. generic
C. future
D. none of the above
Ans: A
38. Unascertained goods is otherwise called as _______________ goods
A. specific
B. generic
C. future
D. none of the above
Ans: B
39. Goods identified and agreed upon at the time a contract of sale is made is called
A. Ascertained
B. Specific
C. both a & b
D. Nor a neither b
Ans: C.
40. Goods indicated by description and not specifically identified
A. unascertained
B. generic
C. both a & b
D. none of the above
Ans: C.

1. The Sale of Goods Act, was enacted on

A.15th, February, 1930 B. 15th, March, 1930

C. 15th, April, 1930 D.None of above

Answer & Explanation

Answer: Option B

Explanation:

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2. The Sale of Goods Act, was enforced on

A.1st day of May, 1930 B. 1st day of June, 1930

C. 1st day of July, 1930 D.None of above

Answer & Explanation

Answer: Option C

3. The sale of Goods Act, 1930 contains

A.66 Sections B. 68 Sections

C. 70 Sections D.None of above

Answer & Explanation

 Answer: Option A

Explanation:

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4. The Sale of Goods Act, 1930 is based on

A.US Sale of Goods Act B. English Sale of Goods Act

C. Indian Sale of Goods Act D.None of above

Answer & Explanation

Answer: Option B

Explanation:

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5. Section 2, of The Sale of Goods Act is about

A.Principles B. Definitions

C. Exceptions D.None of above

Answer & Explanation

Answer: Option B

Explanation:

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6. As per-section 2(1), a person who buys or agrees to buy goods is called

A.Buyer B. Seller

C. Both (a) and (b) D.None of above

Answer & Explanation

 Answer: Option A

Explanation:

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7. The voluntary transfer of possession from one person to another is called

A.Transfer B. Change of possession

C. Delivery D.None of above

Answer & Explanation

Answer: Option C

Explanation:

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8. Section 2, sub-section______, of the Sale of Goods Act, 1930 defines "Goods"

A.5 B. 6

C. 7 D.None of above

Answer & Explanation

Answer: Option C

Explanation:

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9. As per section 2, sub section 7 every kind of moveable property other than actionable claim
and money is called

A.Goods B. Future goods

C. Both (a) and (b) D.None of above

 Answer & Explanation

Answer: Option A

Explanation:

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10. Future goods means goods to be manufactured or produced or acquired by the seller

A.In future prescribed time B. After making of contract

C. Before making of contract D.None of above

Answer & Explanation

Answer: Option B

Explanation:

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1. According to Contract Act, what is true about the “Contract”?

I. Legal Term
II. Binding agreement
III. Always in written
(A) II only
(B) I and II only
(C) II and III only
(D) I, II and III

2. Contract can be signed between

(A) Individuals
(B) Legal Entities
(C) Both (A) and (B)
(D) None of these

3. In general, Partnership entails

(A) Limited Liability
(B) Unlimited Liability
(C) No Liability at all
(D) Both (A) and (C)

4. Which kind of partnership entails more legal benefits?

(A) Limited Liability Partnership
(B) Unlimited Liability Partnership
(C) Ordinary Partnership
(D) None of these

5. Limited Liability in Partnership has been introduced after seeking inspiration from
(A) Sole Proprietorship
(B) Company or Corporation
(C) Both (A) and (B)
(D) None of these

ANSWERS: BUSINESS LAW MCQS

1. (D) I, II and III
2. (C) Both (A) and (B)
3. (B) Unlimited Liability
4. (A) Limited Liability Partnership
5. (B) Company or Corporation

6. Companies with shares available on stock market are called

(A) Listed Companies
(B) Unlisted Companies
(C) Stock Companies
(D) Equity-based Companies

7. Stock Exchange facilitates the business of

I. Company Formation
II. Company Regulation
III. Buying and Selling of Shares
(A) I only
(B) I and II only
(C) III only
(D) I, II and III

8. Death of a company is termed as

(A) Collapse
(B) Liquidation
(C) None of These
(D) A company cannot be dead

9. Sole Proprietorship is a kind of business that involves

(A) One Individual
(B) Two Individuals
(C) More than Two Individuals
(D) None of these

10. “Pacta sunt Servanda” means

(A) Promises must be kept
(B) Promises must be Broken
(C) Promises must not be Broken
(D) Promises are contracts by nature

ANSWERS: BUSINESS LAW QUIZ

6. (A) Listed Companies
7. (C) III only
8. (B) Liquidation
9. (A) One Individual
10. (A) Promises must be kept

11. A contract to sell the property by a minor through guardian is

(A) Void
(B) Voidable
(C) Valid
(D) None of these

12. “Void Ab Initio” means

(A) Invalid from the Beginning
(B) Partly Invalid
(C) Partly Valid
(D) None of these

13. We are uploading more MCQs..

(A)
(B)
(C)
(D)

14.
(A)
(B)
(C)
(D)
15.
(A)
(B)
(C)
(D)

ANSWERS: MERCANTILE LAW MCQS

11. (C) Valid
12. (A) Invalid from the Beginning
13.
14.
15.
 103- LEGAL ASPECTS OF BUSINESS

1)Law of contract is—

a)not the whole of agreements nor is it the whole law of obligations b)the whole law of agreements c)the whole
law of obligations d)none of the above.

2)A contract creates

a)rights in personam , b)rights in rem, c)only rights and no obligations , d)only obligations and no rights.

3)An agreement is a voidable contract when it is –

a) enforceable if certain conditions are fulfilled. B)enforceable bylaw at the option of the aggrieved party . c)
enforceable by both parties d)not enforceable at all.

4)An agreement not enforceable by law is said to be

a)void , b)voidable, c)valid, d)unenforceable, d0 illegal.

5)A contract

a) may be void as originally entered into b)may become void subsequent to its formation c)cannot become void
under any circumstances d) may become void at the will of party.

6)The transactions collateral to an illegal agreement are

a)not affected in any manner , b)also tainted with illegality c)voidable at the option of the plaintiff d)void

7)A contract is

a) a legal obligation b) an agreement plus a legal obligation c) consensus ad idem, d) agreement plus a legal
object.

8)Flaw in capacity to contract may arise from –

a)lack of free consent b lack of consideration c) minority d)absence of legal formalities.

9) Which of following result in an offer-

a)A declaration of intention b)an invitation to offer, c)an advertisement offering reward to anyone who finds lost
dog of the advertise, d)an offer made in a joke.

10)A specific offer can be accepted by

a)any person b)any friend of offerer c) the person to whom it is made d)any friend of offeree.

11)A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is

a) a contract voidable at the option of acceptor b)a contract voidable at the option of offerer, c)no contract at all, d)a
valid

12)Acceptance may be revoked by the acceptor

 a)t any time b)before the letter of acceptance reaches the offerer c)after the letter of acceptance reaches the
offeree d)before the death of the acceptor.

13)An advertisement to sell a thing by auction is

a)an offer b)an invitation to offer c)no offer at all d)a contract e) an obligation.

14)On the face of the ticket for a journey the words ―for conditions see back‖ are printed in small print .The
passenger –

a)is bound by the conditions whether he takes care to read them or not . b) is not bound by the conditions c)may
not take note of the conditions d)none of the above.

15)An offer is made to Mani in crowd It –

a) can be accepted by him alone, b)may be accepted by any person who hears it. C)may be accepted by his brother
d)may be accepted by his friends.

16)An acceptance is not according to the mode prescribed but the offerer decides to keep quiet. In such a case there
is –

a) a contract, b) no contract, c)a voidable contract, d) an unenforceable contract.

17)There is a counter-offer when-

a)the offeree gives conditions for acceptance or introduces a fresh term in acceptance b)the offerer makes a
fresh offer c)the offeree makes some query . d )the offeree accepts it.

18)A makes an offer to B on 10th by a letter which reaches B on 12 th B posts letter of acceptance on 14 th which
reaches A on 16th . The communication of acceptance is complete as against A on –

a) 12th b) 14th c)16th

19)Consideration must move at the desire of –

a)the promisor, b) the promisee , c) promisor or any other third party , d)both the promisor and the promisee . e)any
third party

20)Consideration –

a)must move from the promisee , b)may move from the promisee or any other person c)may move from the third
party d) may move from the promisor.

21)Consideration-

a)must be adequate to the promise made, b)need not be adequate to the promise made c)must be of reasonable
value d) must be of more value than the value of promise made.

22)Consideration must be something which the promisor –

a) is already bound to do ,b)is not already bound to do. c)may voluntarily do d)must not do.

23) Compromise of dispute claims –

a)is a good consideration for a contract b)is not a good consideration for a contract c) results in a void agreement
d)is not permitted by law.

24)A promise to compensate ,wholly or in part , a person who has already voluntarily done something for the
promisor is

a)enforceable b)not enforceable because it is without consideration, c) void d) voidable.

25)A person who is not party t a contract-

a)cannot sue, b)can sue , c) can sue only in well recognized cases d)none of these.

26)Consideration in a contract –

a) may be past ,present or future, b)may be present or future only . c)must be present only. D)must be future only.

27)An agreement made without consideration is

a)valid, b)illegal ,c)voidable d)void

28)A promise to subscribe to a charity .The promise is a

a) valid contract , b)voidable contract , c)void agreement d) void contract.

29) An agreement with or by minor is –

a)void b)voidable at the option of the minor c) voidable at the option of the other party d) valid.

30)On attaining the age of majority a minor‘s agreement –

a) can be ratified by him b)cannot be ratified by him c)becomes void d)becomes valid.

31) A minor , by misrepresenting his age , borrows some money –

a) he can be sued for the fraud, b)he cannot be sued for the fraud c)he is liable to return the money d) None of the
above.

32)A minor enters into a contract for the purchase of certain necessaries , in such case –

a) he is not personally liable to pay b)he is liable to pay c)his estate is liable to pay d) his guardian is liable to pay.

33)A person is usually of sound mind , but occasionally of sound mind –

a) he may enter in to a contract when he is of sound mind , b) he may not make a contract even when he is of
sound mind c)he cannot enter into a contract at all. d)None of the above.

34)A contract by an idot is –

a) voidable b) enforceable c)invalid d)void ab inito

35)Contracts made before war with an alien enemy which are against public policy are –

a) suspended and are revived after the war is over. b) dissolved c)not affected at all d)void ab initio

36)The contractual capacity of a company is regulated by –

a)its memorandum of association and the provisions of the companies act, 1956 b)the terms of contract entered
into with a third party c)its articles of association d) its prospectus.

37) The case of Mohiri Bibi v. Dharmodas Ghose (1903) deals with-

a)communication of offer b)communication of acceptance c)a minors agreements d) fraud e)a lunatic‘s agreement.

38)Flaw in a capacity to contract may arise from –

a) want of consideration b)unsoundness of mind c)illegality of object d) uncertainty of object.

39) Where consent is caused by fraud or misrepresentation , the contract is –

a) voidable at the option of the aggrieved party b) void c) unenforceable d) not affected in any manner .

40)Where both the parties to an agreement are under a mistake as a matter of fact essential to the agreement ,the
agreement I –

a) void b) voidable c )illegal d) not affected at all.

41)Merely because a contract was caused by one of the parties to it being under a mistake as to a matter of fact , it is
not-a) voidable b) void c)affected at all d) none of the above.

42)Consent given to a contract under some misrepresentation by the other party makes the contract –

a) void b) invalid c) unenforceable d) voidable

43)When a person positively asserts that a fact is true when his information does not warrant it to be so, though he
believes it to be true , there is –

a) misrepresentation b) fraud c) undue influence d) coercion.

44)Fraud exists when it is shown that a false representation has been made-

a) knowingly b)unknowingly c)unintentionally d)recklessly , not caring whether it is true or false

45) A mere attempt at deceipt by a party to a contract –

a) is not fraud unless the other party is actually deceived b) is fraud whether the other party has been deceived or
not c) amounts to misrepresentation d ) none of the above.

46)When consent to an agreement is obtained by undue influence, the agreement is a –

a)contract voidable at the option of the party whose consent was so obtained b) void contract. C) valid contract
d)void agreement.

47)which of the following relationships raise presumption of undue influence?

a) landlord and tenant b)parent and child c)doctor and patient d) Husband and wife e) Fiancé and fiancée f)
creditor and debtor.

48) If there is error in cause ,the contract I

a) void b) voidable c) valid d)illegal

49)I there is error in consensus , the agreement is

a) void b)voidable c)avoid d)illegal e )not affected at all.

50)If there is a unilateral mistake as regards identity of a party caused by fraud of he other party , the contract is –

a) void ,b) voidable ,c)valid d)illegal

51)If there is a fraudulent misrepresentation as to the contents of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

52) If there is a fraudulent misrepresentation as to the character of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

53)The Case of Cundy v. Lindsay (1878)deals with –

a)Coercion b)undue influence c)mistake as to the nature of transaction d) mistake as regards identity

54)A promise made without the intention of performing it amounts to –

a)innocent misrepresentation b) fraud c)negligent Misrepresentation d) wrongful misrepresentation

55) The3 unlawful detention of any property of a person to obtain his consent to a contract amounts to –

a) misrepresentation b) fraud c) undue influence d) coercion.

56) The collateral transactions to an illegal agreement are-

a)Void, b) illegal, c)voidable ,d)not affected at all

57)An agreement made with an alien enemy is

a)unlawful on the ground of public policy b)unlawful because it becomes difficult to be performed c) valid,
d)voidable.

58)A person enters into an agreement whereby he is bound to do something which is against his public or
professional duty. The agreement is –

a) void on the ground of public policy b) valid , c)voidable d) illegal

59) Regulation as to the opening and closing of business in a market are

a)not unlawful even if they are in restraint of trade . b)unlawful because they are in restraint of trade . c) void d)
not valid

60)An employee , by the terms of his service agreement , is prevented from accepting a similar engagement after the
termination of his service .The restraint –

a) valid b)void c) illegal d)unenforceable

61)The case of nordenfelt v. maxim nordenfelt gun co. (1904)deals with

a ) agreement in restraint of legal proceedings, b)minor‘s agreements c)agreement in restraint of trade
d)agreement in restraint of marriage.

62) A contract of life insurance is-

a) a contract of indemnity b)not a contract of indemnity c)a wagering agreement d)a contingent agreement.

63)an agreement the meaning of which is not certain ,is-

a) void b) voidable c)valid d) illegal

64)Which of the following are wagering agreements,-

a) a crossword competition the prizes of which depend upon correspondence of the competitors solution with
a previously prepared solution, b)picture puzzles ,c) share market transactions in which delivery of stocks and
shares is intended to be given and taken d) a contract of insurance, e) an agreement to buy a ticket for a lottery. f)
commercial transactions , if the intention is not to deliver the goods but only to pay the difference in price g) a
crossword competition involving a good measure of skill for its successful solution.

65) An agreement to do an impossible act is,

a) void b) voidable c) illegal d) enforceable under certain circumstances.

66)A wagering agreement is .

a) forbidden by law, b) immoral, c) opposed to public policy d) none of the above.

67) A contract of insurance is a –

a) contract of guarantee b ) contingent contract c) wagering agreement d)unilateral agreement.

68)Which of the following are contingent contracts?

a)contract of insurance b)contract of guarantee , c)contracts for the sale of goods on credit d0 Wagering
agreements

69)A contingent contract is –

a) void b) voidable c)valid d) illegal

70)A contract to pay B Rs. 10,000 if B s house is burnt – This is a

a) wagering agreement b)void c)voidable agreement d)contingent contract e) contract of guarantee .

71)A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a year .A ‗s promise can be
enforced when the ship

a)arrives Mumbai a damaged condition during the years b)is lost during the year c)is sunk during the years
d)arrives Mumbai in a good condition during the year.

72) Promises forming consideration for each other are known as,

a)independent promises b)dependent promises c)reciprocal promises. d)mutual promises

73)Each party is a promisor and a Promisee in case of –

a)past consideration b)present consideration c)every contract d) reciprocal promises

74)When promisee refuses to accept performance from the promisor who offers to perform ,it is –

a)attempted performance , b) vicarious performance , c)tender d) frustration of contract.

75)Sale of goods for cash is an example of –

a)mutual and independent promises b) mutual and dependent promises c) mutual and concurrent promises
d)conditional and dependent promises,.

76)When a party to a contract transfers his contractual rights to another , it is known as ,-

a)rescission of contract b) waiver of contract c)discharge of contract, d) assignment of contract.

77)Where the debtor does not expressly intimate or where the circumstances attending on a payment do not indicate
any intention , the creditor –

a)may apply it to any lawful debt due b)May apply it even to a time barred debt.

78)When two or more persons have made a joint promise ,then unless a contrary intention appears from the contract,
all such persons must fulfill the promise –

a) jointly b) severally c)jointly and severally d)jointly or severally

79) Assignment by operation of law takes place –

a)by the mutual consent of parties b)by the will of either party c)when the subject matter of a contract ceases to exist
. d)by the death of a party to a contract.

80)A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal representation of A are –

a)Liable for Rs. 10000b) liable for Rs. 6000 c)not liable at all d) liable for Rs. 3000.

81) Owing to a strike in the factory of A , he is not able to supply the goods to B as per the terms of the agreement >
The agreement in such a case

a) is discharged b) is not discharged c) becomes void d) is voidable at the option of A.

82) If a contract contains an undertaking to perform an impossibility , the contract is –

a) void ab initio b)void c)voidable at the option of the plaintiff d) illegal

83)An agreement to do an act impossible in itself –

a) is void, b) is voidable c)is void ab initio d)becomes void when impossibility is discovered

84)If a new contract is substituted in place of an existing contract , it is called –

a)alteration b)rescission c) novation d)waiver ,e)remission

85)The case of Taylor v. caldwell (1883)deals with-

a)discharge of contract by destruction of subject matter , b) anticipatory breach of contract c) discharge of
contract by death of a party d)breach of contract.

86)A lends Rs. 500 to B . He later tells B that he need not repay the amount , the contract is discharged by –

a)breach b ) waiver c) novation d)performance

87)A contract has become more difficult of performance due to some un-contemplated events or delays .The
contract –

a)is discharged b) is not discharged c)becomes void d) becomes voidable.

88) Where a contract could not be performed because of the default by a third person on whose work the promisor
relied , it –

a) is not discharged b) is discharged c)becomes void d)becomes voidable.

89)A creditor agrees with his debtor and a third party to accept that third party as his debtor . The contract is
discharged by, -

a) performance b)alteration c)waiver d)remission e) remission

90) The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954)deals with-

a) agreement opposed to public policy b) Supervening impossibility c) contract of guarantee d) agency

91)A undertakes to paint a picture of B .He dies before he paints the picture . The contract –

a) is discharged by death b)becomes voidable c)becomes voidable at the option of the legal representatives of A .
d)will have to be performed by the legal representatives of A.

92)The court may grant rescission where the contract is-

a) voidable at the option of the plaintiff b)void c)unenforceable d) illegal

93)The foundation of modern law of dameges was laid down in , -

a) Tinn v . Hoffman b) Taylor v. caldwell c)Hadley v. Baxendale d) Addis v. Gramophone

94)Specific performance may be ordered by the court when –

a) the contract is voidable b) damages are an adequate remedy c)damages are not an adequate remedy d)the
contract is uncertain.

95)The measure of damages in case of breach of a contract is the difference between the –

a)contract price and the market price at the date of breach b) contract price and the maximum market price
during the term of the contract c) contract price and the price at which the plaintiff might have sold the goods ,d)
contract price and the price fixed by court.

96)The case of Hadley v. Baxendale (1854) deals with

a) anticipatory breach of contract. b) quantum of damages c)supervening impossibility d)quasi contract.

97)Anticipatory breach of a contract takes place –

a)during the performance of the contract b)at the time when the performance is due. c) before the performance is
due d) at the time when the contract is entered into.

98) In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the customer ,the court
may award----

a) ordinary damages ,b) nominal damages c)exemplary damages d) contemptuous damages.

99) Ordinary damages are damages which---

a) arise in the usual course of things from the breach b)which are in the contemplation of the parties at the time
when the contract is made c) are agreed in advance d) are given by way of punishment for breach of contract.

100)A agreed to sell 100 shares to B at Rs. 75 per share delivery to be given on the 1 st march , B refused to accept
delivery on 1st march as price had gone down to Rs. 60 per share .Subsequently A sold these shares at Rs.92 per
share –

a)A cannot recover any damages from B b)A will have to restore to BRs. 1700 i.e. the profit he made c) A caan
recover dameges to be determined by the President of the stock exchange.

101)Exemplary damages are –

a) allowed in case of dishounor of a cheque by a banker having sufficient funds b) the difference between the
contract price and the market price c)allowed where in case of breach of a contract , the plaintiff has not suffered
any loss. D) none of these.

102) A quasi contract –

a) is a contract b) as an agreement c)creates only legal obligation d)is none of these

103)when an agreement is discovered to be void ,any person who has received any advantage under such agreement

a) is bound to restore it b) is not bound to restore it c)is not bound to return it .d) may retain it e) none of these

104)A minor has been supplied necessaries on credit-

a) he is not liable b) he is personally liable c) his estate is liable d) he is not personally liable

105) A person who finds good belonging to another and takes them into his custody ,is subject to the same
responsibility as a-

a) bailee b) true owner c) bailor d) pledge.

106) A finder of lost goods is a –

a) bailor b) Baile c) true owner d) thief

107)Quantum meruit means –

a)a non gratuitous promise b)an implied promise c)as mush as earned d)as much as is paid.

108) A contract of indemnity is a –

a) a contingent contract b) wagering contract c)quasi contract d) void contract

109)The definition of a contract of indemnity as given in the Indian contract act ,1872 includes

a)express promises to indemnity b)implied promises to indemnity c) cases where loss arises from accidents and
events not depending on the conduct of the promisor or any other person d)cases where the loss is caused by the
conduct of the promisor himself or by the conduct of any person

110) S and P go into a shop ,S says to the shopkeeper ,C let P have the goods and if he does not pay you , I will
―This is a –

a)contract of guarantee b)contract of indemnity c)wagering agreement d) quasi contract

111) Any variance made without surety‘s consent in the terms of the contract between the principal debtor and the
creditor discharges the surety –

a) as to transactions prior to variance b) as to transactions subsequent to variance c) as to all transactions d) from

his liability under the guarantee.

112)A guarantee obtained by a creditor by keeping silence as to material circumstances is –

a) valid b)voidable c)unenforceable d) invalid

113)Where there are co-sureties ,a release by the creditor of one of them –

a) discharges the other co-sureties b) does not discharge the other co-sureties c)makes all the co-sureties
immediately liable d) makes the contract of guarantee void.

114) The right of subrogation in a contract of guarantee is available to the

a) creditor b) principal debtor c) surety d)indemnified

115) The omission of the creditor to sue within the period of limitation –

a) discharges the surety b) does not discharge the surety c) makes the contract of guarantee void d)makes the
contract of guarantee illegal.

116) In a sale, the property in goods –

a) is transferred to the buyer , b) is yet to be transferred to the buyer c) may be transferred at a future time d) is
transferred when goods are delivered to the buyer e)is transferred when the buyer pays the price

117)In a sale ,if the goods are destroyed , the loss falls on –

a) the buyer b) the seller c) partly on buyer and partly on seller d)the seller if price has not been paid e) by the
buyer.

118)The term property as used in the sale of goods act 1930 means

a) possession b ) ownership c) ownership and possession both d) the subject matter of contract of sale.

119) If a price is not determined by the parties in a contract of sale , the buyer is bound to pay –
a)the price demanded by the seller ,b) a reasonable price c) the price which the buyer thinks is reasonable d) the
price to be determined by a third independent person.

120)The doctrine of caveat emptor applies –

a) incase of implied conditions and warranties b) when the buyer does not intimate the purpose to the seller and
depends upon his own skill and judgment c) when goods are sold by sample d) when goods are sold by description

121)If a sale is by sample as well as by description , the implied condition is that the goods shall correspond with –

a) sample b) description c) both sample and description d) either sample or description .

122)In a sale , there is an implied condition on the part of the seller that he –

a) has a right to sell the goods b) is in possession of the goods c) will have the right to sell d) will acquire the goods

123)A condition is a stipulation which is a –

a) essential to the main purpose of contract of sale b) not essential to the main purpose of contract of sale ,c)
collateral to the main purpose of contract of sale d) none of the above.

124)In case of breach of a warranty , the buyer can –

a) repudiate the contract b) claim damages only c) return the goods d) refuse to pay the price e) refuse to take
delivery of the goods .

125)In case of breach of a warranty , the buyer can –

a) claim damages only b) repudiate the contract c)cannot return the goods d) refuse to take delivery of the goods
 MULTIPLE CHOICE QUESTIONS
(103)- (LEGAL ASPECT OF BUSINESS) CLASS M.B.A I YEAR
.

1. Indian Contract Act extends to the whole of India excepts to the state of?
a. Assam
b. Jammu & Kashmir
c. West Bengal
d. None of these
Ans: B
2. An agreement enforceable by law is called?
a. Void
b. Promise
c. Contract
d. All of these
Ans: C
3. Chapter I of the Indian Contract Act deals the ______ of proposals?
a. Communication
b. Revocation
c. Acceptance
d. All of these
Ans : D
4. In order to convert a proposal into a promise the acceptance must...?
a. Absolute
b. Unqualified
c. Absolute & Unqualified
d. None of these
Ans: C
5. Agreement means ________________.
a. Offer + acceptance
b. Offer + contract
c. Contract + acceptance
d. Enforceable by law
Ans:A
6. The two contracting parties must agree as regards the subject-matter of the
contract at the same time & in the same sense is called as __________.
a. personam
b. consensus-ad-idem
c. reciprocal promise
d. accepted proposal
Ans: B
7. Technical term of void contract is _________.
a. voidable contract
b. void-ab-initio
c. personam
d. void agreement
Ans: B
8. Communication of a proposal is complete when it comes to the knowledge of the person to
whom it s made.
a. True
b. Partly True
c. False
d. None of these
Ans: A
9. Incase of breach of contract of sale of some rarea article or thing for which there is no
substitue available in the market the court may grant-
a.Quantum Meruit
b.Rescission
c.Specific Performance
d. Injunction
Ans: C
10. _______ is one the object of which is unlawful.
a. Void contract
b. Wager
c. An illegal agreement
d. Voidable contract
Ans: C
11. A proposal, when accepted becomes a ________.
a. promise
b. contract
c. offer
d. consensus
Ans: A
12. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
13. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
a. wagering contract
b. bilateral contract
c. illegal contract
d. unenforceable contract
Ans: B
14. Promises which form the consideration or part of the consideration for each other is
called as __________.
a. reciprocal promise
b. reciprocal offer
c. reciprocal performance
d. consideration
Ans:A
15. If any parties to the contract refuses or fails to perform his part of the contract or by
his act makes it impossible to perform his obligation under the contract, it is called
as _________.
a. breach of contract
b. void contract
c. tender
d. novation
Ans:A
16. A Quasi- contract under Indian Contract Act
a. Is an agreement
b. Is a contract
c. Has on a legal obligation
d. None of these
Ans: C
17. A contingent contract dependent on the non happening of specified uncertain event within
fixed time can be enforced if the event __
a. Does not happen within a fixed time
b. Becomes impossible before the expiry of the fixed time
c. Happens within a fixed time
d. Both (a) & (b)
Ans: D
18. An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Ans:A
19. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B
20. Substitution of a new contract for the original contract is called as ______.
a. novation
b. rescission
c. alteration
d. remission
Ans:A
21. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
22. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B

23. The court order to restrain a person not to do a particular activity is called as
 ________.
a. quantum meruit
b. specific performance
c. injuction
d. novation
Ans:C
24. Coercion involves the usage of _________.
a. fraud
b. misrepresentation
c. undue influence
d. all the above
Ans:D
25. A contract which arises on the basis of coercion is called as _________.
a. void contract
b. voidable contract
c. illegal contract
a. lawful contract
Ans:A
26. A contingent contract is ____________ contract.
a. Void
b. Voidable
c. Valid
d. Illegal
Ans:C
27. Damages which may reasonably be supposed to have been in the contemplation of
both parties as he probable result of the breach of a contract is known as ________.
a. ordinary damages
b. special damages
c. vindictive damages
d. nominal damages
Ans:B
28. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
29.Vindictive Damages have been awarded-
a. for a breach of promise to marry
b. for a wrongful dishonour of a cheque by banker processing adequate funds of the customer
c. Either (1) OR (2)
d. Both (1) and (2)
30. An Executary Consideration is-
a. Consideration promised by an executive of a company
b. consideration which consists simply of a mutual exchange of promise each being the
consideration for the other.
c. consideration which should be executed on a future date
d. consideration which should be executed before the court
Ans: C
31. When a person signifies to another his willingness to do or to abstain from doing anything
with a view to obtaining the assent of that other to such act or abstinence-
he is said to-
a. enter into a contract
b. make a proposal
c.accept an offer
d. create legal obligation
Ans: B
32. An agreeement to agree in future is
a. valid
b. voidable
c. invalid.
d. illegal
Ans: C
33. An agreement entered into with free consent and lawful but inadequate consideration is--
a. valid
b. voidable
c. invalid.
d. illegal
Ans: A
34. A minor's estate is liable for the ______ supplied to him
a. Luxuries
b. Necessities
c. Necessaries
d. All of these
Ans: C
35.The aggrieved party in breach of contract has not suffered any loss by reason of the
breach of contract, the damages recoverable by him is ________.
a. payment of interest
b. ordinary damages
c. special damages
d. nominal damages
Ans:D
36. If time is the essence of a contract and the promisor fails to perform the contract by the
specified time, the contract:
a. remains valid
b. becomes void
c. becomes unorceable
d. becomes voidable at the instance of the promise
Ans: D
37. __________ damages are measured on the basis of extent of shock to the sentiments of the
promisee
a. Vindictive
b. Nominal
c. Loss of reputation
d. Discomfort
Ans: A

38. There are _________ ways for actual breach of contract.

a. 1
b. 2
c. 3
d. 4
Answer:B
 39. The technical term “Quantum Meruit” denotes ____________.
a. performance of a contract
b. quantity involved in contract
c. suit for specific performance
d. as much as earned
Answer:D
40. Law of quasi-contract is also known as ________.
a. Law of returns
b. Law of restitution
c. Law of repudiation
d. Law of contract
Ans: B
41. The contract of General Insurance is--
a. Contingent
b. Voidable
c. Valid
d. None of these
Ans: A
42. ___________ means intentional relinquishment of a right under the contract
a. waiver
b. wager
c. alteration
d. rescission
Ans:A
43. Termination of contractual relations between the parties to a contract is called as
________ .
a. performance of contract
b. discharge of contract
c. winding up of contract
d. none of the above
Ans:B
44. ____________ means passing over rights and liabilities from one person to another
person.
a. Devolution
b. Endorsement
c. Passing the buck
d. Escapism
Ans:A
45.An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Answer:A
46. Responsibility of finder of goods under contract is __________.
a. indemnifier
b. bailee
c. owner
d. despatcher
Ans:B
47. A person who finds goods belonging to another and takes them into his custody, is
subject to the same responsibility as a ________________.
a. bailee.
b. true owner .
c. thief.
d. agent.
Ans:A
48. A finder of lost goods is a _____________.
a. bailer.
b. bailee.
c. true owner.
d. thief.
Ans:B
49. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A
50. The position of finder of lost goods is that of a ___________.
a.Bailer .
b.Bailee.
c.Surety.
d.Principal debtor.
Ans: B
51. A gratuitous bailee is liable for defects in the goods bailed __________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases.
d. in particular case.
Ans:B
52.A gratuitous bailment is one which is _____________.
a. supported by consideration
b. not Supported by consideration
c. not enforced by law
d. void
Ans:B
53. According to Sale of Goods Act, 1930, “Seller” means a person
a. Who only agrees to sell the goods
b. Who only sells the goods
c. Who sells or agrees to sell the goods
d. None of these
Ans: C
54. A bailee has___________.

a. a right of particular lien over the good bailed.

b. a right of general lien.

c. a right of both particular and general lien.

d. no lien at all over the goods bailed.

Ans:A
 55. In sale, if the goods are destroyed, the loss falls on _____________.

a. the buyer.

b. the seller.

c. partly on the buyer and partly on the seller.

d. third party.

Ans:A

56. If sale is by sample as well as by description, the implied condition is that the goods

shall correspond with ____________.

a. sample.

b. description.

c. both sample and description.

d. either sample or description.

Ans:C

57. In a sale, there is an implied condition on the part of seller that he __________.

a. has right to sell the goods.

b. is in position of the goods.

c. will have the right sell.

d. will not have the right to resell.

Ans:A

58. A condition is a stipulation which is____________.

a. essential to the main purpose of contract of sale.

b. not essential to the main purpose of the contract of sale.

c. collateral to the main purpose of contract of sale.

d. additional security.

Ans:A

59. ' Contract of Sale' under Sale of Goods Act, 1930, comprises of contracts which are,
a. Executory
b. Concluded
c. Both executory and executed
d None of these
Ans: C
60. In a contract of sale of goods the implied condition of wholesomeness applies to---
a. Medicines
b. Eatables
c. Cloth
d. Computers
Ans: B

61. The consideration in a contract of Sale is called--

a. Price
b. Exchange Money
c. Barter Money
d. Rewards
Ans:A
62. When a breach of condition is treated as a breach of warranty, the buyer cac--
a. Repudiate the contract
b. Reject the goods
c. Claim damages
d. None of these
Ams: C
63. The main objective of a contract of sale is ______________.

a. transfer of possessing of goods.

b.transfer of property in goods from seller to buyer.

c. delivery of goods.

d. payment of price.

Ans:B

64. When there is a contract for the sale of unascertained goods, the property in

goods___________.

a. passes when the buyer pays the price.

b. does not pass until the goods are ascertained.

c. when the contract is entered into.

d. when the buyer accepts the goods.

Ans:B

65. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
a. accept the whole.

b. reject the whole.

c. accept the goods ordered for and can return the excess quantity.

d. either a or c

Ans:D

66. The lien of an unpaid seller depends on _____________.

a. possession.

b. title.

c. ownership.

d. possession and ownership.

Ans:A

67. An unpaid seller can excises the right of stoppage in transit when the carrier holds the

goods ____________.

a. as sellers agent.

b. as buyer s agent.

c. as agent of both of them.

d. in his own name.

Ans:D

68. The sale of goods act, 1930 deals with _________.

a. movable goods only.

b. immovable goods only.

c. both movable and immovable goods.

d. all goods except ornaments.

Ans:A

69. The term, ‘goods’ for the purpose of sale of goods act does not include _________.

a. money.
b. actionable claims.

c. immovable property.

d. all the above.

Ans:B

70.A contract for the sale of ‘furniture goods’ is_____________.

a. sale.

b. agreement to sell.

c. void.

d. voidable.

Ans:B

71. ___________ gives the buyer only a right to claim damages.

a. Condition.

b. Guarantee.

c. Warranty.

d. Indemnity.

Ans:C

72. Which of the following is not an implied condition in a contract of sale _________.

a. condition as to title.

b. condition as to description.

c. condition as to freedom from the encumbrance.

d. condition as to a sample.

Ans:C

73. A contract of sale may be __________.

a. absolute only.

b. condition only.

c. absolute and conditional.

d. indemnity.

Ans:C

74. S and P gets into a shop. S says to the shopkeeper C “let P have the goods, and if he

does not pay you, I will”. “This is a __________.

a.contract of guarantee.

b.contract of indemnity.

c.wagering contract.

d.quasi-contract.

Ans:A

75. A bailment is usually created by agreement between ______________.

a. the principal & the agent.

b. the contracted parties.

c. the bailer & the bailee.

d. the guaranteed & parties.

Ans: C.

76. The gratuitous bailer is liable to bailee for the defects in the goods bailed

___________.

a. even if he is not aware of them.

b. only if he is aware of them.

c. in all cases of loss.

d. in certain case of loss.

Ans:B

77.The term 'property' as used in the Sale of Goods Act, 1930 means_____________

a. possession.

b. ownership.

c. both ownership and possession.

d. the subject matter of contract of sale.

Ans:B

78.The term “contract to sale” is a generic term which includes both __________ .

a. sale & an agreement to sell.

b. contract & agreement.

c. possession & Ownership of goods.

d. transfer to ownership & possession.

Ans: A

79. _________ form the subject of a contract of sale.

a. Assets.

b. Consideration

c. Goods.

d. Agreement to sell.

Ans: C

80. There is a constructive delivery of goods_____________.

a. When the seller hands over to the buyer the key of the warehouse where the goods are

lying.

b. When a third person in possession of the goods acknowledged to the buyer that he

holds them on his behalf.

c. When the seller physically delivers the goods to the buyers.

d. When the seller asks the buyer to take delivery of the goods.

Ans:B
81.Where there is no specific agreement as to place, the goods sold are to be delivered

at the place______________.

a. at which they are at the time of sale.

b. of the buyer.

c. desired by the buyer.

d. to be determined by the seller.

Ans:A
82. An implied warranty or condition as to quality or fitness for a particular purpose may

be annexed by the usage of ________.

a. trade.

b. goods.

c. commerce.

d. agreement to sell.

Ans: A

83. __________ is an illicit act dissuading the intending purchase r from bidding.

a. Withholding the goods.

b. Damping.

c. Knockout.

d. Repudiation.

Ans: B

84. Where there is an unconditional contract for the sale of specific goods in a

deliverable state, the property in the goods passes to the buyer when ______________.

a. the goods are delivered to the buyer.

b. the price is paid by the buyer.

c. the contract is made.

d. the buyer accepts the good.

Ans:C

85. ___________ is a contract in which the terms are started in words (Written or
Spoken) by the parties.

a. Express contract.

b. Implied contract.

c. Executed contract.

d. Executory contract.

Ans: A

86. The doctrine of caveat emptor applies______________

a.in case of implied conditions and warranties.

b.when the buyer does not intimate the purpose to the seller and depends upon his own

skill and judgment.

c.when goods are sold by sample.

d.when goods are sold by description.

Ans:A

87. “A” who purchases certain goods from B by a misrepresentation and pledges them

with “C”. The pledge is _____________.

a. valid.

b. void.

c. voidable.

d. invalid.

Ans:B

88. In a hire – purchase agreement, the hirer ____________.

a. has an option to buy the goods.

b. must but the goods.

c. must return the goods.

d. is not given the possession of the goods.

Ans:A
 89. ____________ means competency of the parties to enter into a valid contract.

a. Solvency.

b. Capacity.

c. Consequences.

d. Position.

Ans: B

90. The measure of damages in case of breach of a contract is the difference between the

___________.

a. contract price and the market price at the date of breach.

b. contract price and the maximum market price during the terms of contract.

c. contract price and the price at which the plaintiff might have sold the goods.

d. contract price and the price fixed by the court.

Ans:A

91. Technical term of contract without consideration is called as ________ .

a. nadum pactum.

b. void – ad-initio.

c. consensus –ad-idem

d. caveat emptor.

Ans: A

92. Mr. A, a tradesman, leaves goods at Mr. B’s house by mistake. Mr. B treats the goods

as his own. He is bound to pay for Mr.A. This is an example for obligation to pay for

________.

a. non-gratuitous act

b. gratuitous act

c. coercion
d. quantum meruit

Ans:A

93. Where the buyer wrongfully refuses to aceept the goods, the seller may recover the damages
a. for the reasonable charges for the care and the custody of goods
b. for the loss caused by the non accepatnce of goods
c. either (a) OR (b)
d. both (a) AND (b)
Ans: D
94. Under the Sale of Goods Act 1930, the existing goods are classified as
a. Specified Goods
b. Ascertained Goods
c. Unascertained Goods
d. All of the above
Ans: D
95. Following is not a document of title
a. railway receipt
b. bill of lading
c. dock of warrant
d. None of these
Ans: D
96. When the terms of the contract of sale of goods are such that by reserving the right of
disposal, the seller commits a breach of contract, and the goods appropriated to the contract does
not cause the property in goods to pass to the buyer. It is--
a. Partly True
b. True
c. False
d. None of these
Ans: B
97. When the seller exercises right of lien or right of stoppage of goods in transit and gives
notice to the buyer for payment and the buyer does not pay or tender within reasonable time , an
unpaid seller can--
a. re-sale the goods
b. cannot re-sale the goods
c. ask again to the buyer
d. take possesion and mark the good as bad
Ans: A

98. Ignorance of law is _____________.

a. an excuse

b. not an excuse

c. punishment

d. offence

Ans:B
 99. ‘A’ permits a coolie to put his luggage to a carriage. The contract comes into

existence as soon as the coolie puts the luggage. So ‘A’ has only to fulfill his part.

This is an example for __________.

a. unilateral contract

b. bilateral contract

c. implied contract

d. executed contract

Ans:A

100. “A person should not be allowed to enrich himself unjustly at the expense of

another” is the principle of ____________.

a. contingent contract

b. wagering contract

c. quasi contract

d. void contract

Ans:C
 LAB

1) Law of contract is—

a) not the whole of agreements nor is it the whole law of obligations
b) the whole law of agreements
c) the whole law of obligations
d) none of the above.

2) An agreement is a voidable contract when it is –

a) enforceable if certain conditions are fulfilled.
B)enforceable bylaw at the option of the aggrieved party .
c)enforceable by both parties

d)not enforceable at all.

3) An agreement not enforceable by law is said to be

a)void ,
b)voidable,
c)valid,
d)unenforceable,
e) illegal.

4) A contract is
a) a legal obligation
b) an agreement plus a legal obligation
c) consensus ad idem,
d) agreement plus a legal object.

5) A specific offer can be accepted by

a)any person
b) any friend of offerer
c) the person to whom it is made
d) any friend of offeree.

6) A letter of acceptance sufficiently stamped and duly addressed is put into course of
transmission. There is
a) a contract voidable at the option of acceptor
b)a contract voidable at the option of offerer,
c)no contract at all,
d) a valid

7) Acceptance may be revoked by the acceptor

a) any time
b) before the letter of acceptance reaches the offerer
c) after the letter of acceptance reaches the offeree
d) before the death of the acceptor.
8) An offer is made to Mani in crowd It –
a) can be accepted by him alone,
b) may be accepted by any person who hears it.
C)may be accepted by his brother
d)may be accepted by his friends.

9) A makes an offer to B on 10th by a letter which reaches B on 12th B posts letter of acceptance
on 14th which reaches A on 16th . The communication of acceptance is complete as against A on
–
a) 12th
b) 14th
c)16th

10) Consideration
a)must be adequate to the promise made,
b) need not be adequate to the promise made
c) must be of reasonable value
d) must be of more value than the value of promise made.

11) A promise to compensate ,wholly or in part , a person who has already voluntarily done
something for the promisor is
a) enforceable
b) not enforceable because it is without consideration,
c) void
d) voidable.

12) Consideration in a contract –

a) may be past ,present or future,
b) may be present or future only .
c) must be present only.
D)must be future only.

13) An agreement made without consideration is

a)valid,
b)illegal ,
c)voidable
d)void

14) An agreement with or by minor is –

a)void
b) voidable at the option of the minor
c) voidable at the option of the other party
d) valid.
15) A minor enters into a contract for the purchase of certain necessaries , in such case –
a) he is not personally liable to pay
b) he is liable to pay
c) his estate is liable to pay
d) his guardian is liable to pay.

16) The contractual capacity of a company is regulated by –

a) its memorandum of association and the provisions of the companies act, 1956
b) the terms of contract entered into with a third party
c) its articles of association
d) its prospectus.

17) Flaw in a capacity to contract may arise from –

a) want of consideration
b)unsoundness of mind
c)illegality of object

d) uncertainty of object.

18) Where consent is caused by fraud or misrepresentation , the contract is –

a) voidable at the option of the aggrieved party
b) void
c) unenforceable
d) not affected in any manner .

19) Where both the parties to an agreement are under a mistake as a matter of fact essential to the
agreement ,the agreement Is –
a) void
b) voidable
c)illegal
d) not affected at all.

20) Consent given to a contract under some misrepresentation by the other party makes the
contract –
a) void
b) invalid
c) unenforceable
d) voidable

21) When a person positively asserts that a fact is true when his information does not warrant it to
be so, though he believes it to be true , there is –
a) misrepresentation
b) fraud
c) undue influence
d) coercion.
.
22) When consent to an agreement is obtained by undue influence, the agreement is a –
a)contract voidable at the option of the party whose consent was so obtained
b) void contract.
C) valid contract
d)void agreement.

23) A promise made without the intention of performing it amounts to –

a)innocent misrepresentation
b) fraud
c)negligent Misrepresentation
d) wrongful misrepresentation

24) The unlawful detention of any property of a person to obtain his consent to a contract
amounts to –
a) misrepresentation
b) fraud
c) undue influence
d) coercion.

25) An agreement made with an alien enemy is

a)unlawful on the ground of public policy
b) unlawful because it becomes difficult to be performed
c) valid,
d)voidable.

26) An agreement to do an impossible act is,

a) void
b) voidable
c) illegal
d) enforceable under certain circumstances.

27) A wagering agreement is .

a) forbidden by law,
b) immoral,
c) opposed to public policy
d) none of the above.

28) If a contract contains an undertaking to perform an impossibility , the contract is –

a) void ab initio
b)void
c)voidable at the option of the plaintiff
d) illegal
29) If a new contract is substituted in place of an existing contract , it is called –
a)alteration
b) rescission
c) novation
d) waiver ,
e)remission

30) In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the
customer ,the court may award----
a) ordinary damages ,
b) nominal damages
c)exemplary damages
d) contemptuous damages.

31) A quasi contract –

a) is a contract
b) as an agreement
c)creates only legal obligation
d)is none of these

32) Quantum meruit means –

a)a non gratuitous promise
b) an implied promise
c) as mush as earned
d) as much as is paid.

33) A contract of indemnity is a –

a) a contingent contract
b) wagering contract
c)quasi contract
d) void contract

34) Where there are co-sureties ,a release by the creditor of one of them –
a) discharges the other co-sureties
b) does not discharge the other co-sureties
c) makes all the co-sureties immediately liable
d) makes the contract of guarantee void.

35) The right of subrogation in a contract of guarantee is available to the

a) creditor
b) principal debtor
c) surety
d)indemnified
1. In a sale, the property in goods –
a) is transferred to the buyer ,
b) is yet to be transferred to the buyer
c) may be transferred at a future time
d) is transferred when goods are delivered to the buyer
e)is transferred when the buyer pays the price

2. In a sale ,if the goods are destroyed , the loss falls on –

a) the buyer
b) the seller
c) partly on buyer and partly on seller
d)the seller if price has not been paid by the buyer.

3. The term property as used in the sale of goods act means

a) possession
b ) ownership

c) ownership and possession both

d) the subject matter of contract of sale.

4. If a price is not determined by the parties in a contract of sale , the buyer is bound to pay
a)the price demanded by the seller ,
b) a reasonable price
c) the price which the buyer thinks is reasonable
d) the price to be determined by a third independent person.

5. A condition is a stipulation which is a –

a) essential to the main purpose of contract of sale
b) not essential to the main purpose of contract of sale ,
c) collateral to the main purpose of contract of sale d) none of the above.

6. In case of breach of a warranty , the buyer can –

a) repudiate the contract
b) claim damages only
c) return the goods
d) refuse to pay the price
e) refuse to take delivery of the goods .

7. Which of the following is not a remedy available to buyers?

a. Right to damages
b. Right to reject the goods
c. Right to specific performance
d. Right to demand replacement goods
1. In the case of partnership firm. Audit is
a) Compulsory
b) Optional
c) None of the above.

2. Property of the company belongs to

a) Company
b) Share holders
c) Members
d) Promoters

3. Minimum paid up share capita l in case of a private company is

a) 1 Lakh
b) 2 Lakhs
c) 3 Lakhs
d) 4 Lakhs

4. Age limit of Directors in case of private company is

a) 65
b) 70
c) 75
d) No limit

5. The liability of members if company is limited by guarantee.

a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

6. The liability of members if company is limited by shares

a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

7. A company is named as govt. company if it is holds % of paid up share capital

a) more than 30
b) more than 40
c) more than 50
d) None

8. Central Government permission is required in case of conversion

a) Private to public
b) Public to private
c) Both (a) or (b)
d) None of the above
9. In case of Non –Profit making Companies notice of general meeting should be given with
in days
a) 14
b) 15
c) 21
d) 22

10. If the guarantee Co. having no share capital the liability of shareholders will be
a) To the extent of guarantee
b) Unpaid value of shares
c) Unlimited
d) None of the above

11. Maximum members in case of private company

a) 50
b) 100
c) 75
d) None of these

12. Maximum paid up capital in case of public company.

a) 50 Lakhs
b) 100 Lakhs
c) 125 Lakhs
d) None of these

13. Any change in the address of the registered office must be communicated to the registrar
with in:
a) 15 days
b) 30 days
c) 1 Month
d) 12 months

14. In case of forgeries acts done in the name of the company are
a) Valid
b) Void
c) Void ab initio
d) None of the above

15. Signature of memorandum and articles should be done by number of

persons in case of public company
a) 7
b) 5
c) 4
d) None of these
16. Address of the registered office is situated in
a) MOA
b) AOA
c) Prospectus
d) None of these

17. The date of the opening of the subscription list means the beginning of the from
the day of the issue of prospectus.
a) 5 th
b) 3 rd
c) 10 th
d) 20 th

18. When the shares are transferred to X from Y. Y will be a of the company
a) Member
b) Shareholder
c) Partner
d) None of these

19. A company can become a members of another company if it is so authorized by

a) MOA
b) AOA
c) Both (a) & (b)
d) None of the above

20. A company can create ‘reserve capital’ by passing

a) an ordinary resolution
b) a special resolution
c) a board resolution
d) None of the above

21. Paying back of capital is called

a) Redemption
b) Conversion
c) Participation
d) None

22. For reducing its share capital it should give notice to whom?
a) Debtors
b) Creditors
c) Both a) & b)
d) None of the above

23. With in 30 days of completion of buy back company shall file the details with whom

a) Registrar
b) SEBI
c) Both a) & b)
d) None of the above
24. Forfeiture can be made only if it is authorized by _
a) AOA
b) MOA
c) ROC
d) C.G

25. is voluntary passage of the rights and duties of member from a share holder.
a) Transfer
b) Transmission
c) Both (a) & (b)
d) None of the above

26. What is the time limit for conducting statutory meeting?

a) 1 to 5 months
b) 1 to 6 months
c) 1 to 9 months
d) None of these

27. In which one of the following cases an ordinary resolution may be passed
a) Commencement of a new business
b) alteration of articles
c) Compulsory winding up of the company
d) none of the above

28. In which one or more of the following company a member does not have a right to
appoint
proxy:
a) Public company having share capital
b) Public company not having share capital
c) Private company not having a share capital
d) None of the above

29. Directors are of the company

a) Employees
b) Employers
c) Both a) & b)
d) None of the above

30. is the official recording of the proceedings of a meeting

a) Quorum
b) Minutes
c) Both a) & b)
d) None of the above
1. means right to be assured, wherever possible, access to a variety of goods and
services at competitive prices.
a. Right to be heard
b. Right to choose
c. Right to be informed
d. Right to safety

2. If the value of goods or services and the compensation, if any, claimed exceeds Rs one
crore, then where should a consumer file the complaint?
a. State Commission
b. National Commission
c. District Forum
d. Supreme Court

3. All of the following are the power and functions of commission EXCEPT
a. Power to award compensation
b. Power to review its own orders
c. Inquiring into certain agreements
d. Power to reject the orders

4. CCI stands for

a. Consumer Commission of India
b. Competition Commission of India
c. Competition Collaboration of India
d. Computer Competition of India

5. IPC stands for

a. International Personal Computer
b. Indian Personal Computer
c. International Penal Code
d. Indian Penal Code

6. The Consumer protection act 1986 enacted in

a. 15-Jun-05
b. 24-Oct-86
c. 24-Dec-86
d. 1 Jan 1986

7. Appropriate laboratory means a laboratory or organization

a. Recognized by Central Government
b. Recognized by state government
c. Both the above
d. None of the above
8. Complainant means

a. Consumer
b. Any voluntary consumer association registered under the companies act 1956
c. The central govt or any state govt
d. All the above

9. Complaint means allegation in writing made by a complainant that

a. An unfair trade practice or restrictive trade practice has been adapted by any traders or
service provider
b. The goods bought by him or agreed to be bought by him suffer from one or more defect
c. A traders or the service provider as the case may be has charged for the goods or for the
services mentioned in the complaint a price in excess of the price
d. All the above

10. The following is not a consumer

a. The insurance company

b. A licensee to run a phone
c. A lottery ticket holder
d. All the above

11. The central consumer protection council shall consist of the following members

a. The minister in charge of consumer affairs in the central govt, who shall be its chairman
b. Such member of other official or non official members representing such interest as may be
prescribed
c. The Chief justice of high court
d. Both A&B

12. The central council shall meet as and when necessary but at least meeting of the
council shall be held every year

a. One
b. Two
c. Three
d. Four

13. Members of state consumer protection council should not exceed

a. Two
b. Five
c. Ten
d. Three
14. Chairman of the district consumer protection council is

a. District magistrate
b. Collector of the District
c. MP of the district
d. None of these

15. Which one of the following know as Consumer disputes redressal agency?

a. District forum
b. State commission
c. National commission
d. All the above

16. President of district forum is

a. Collector of the district

b. A person who are qualified as advocate
c. A person who are qualified to be a district judge
d. None of these

17. Mark the correct option relating to district forum

a. It should have two member , one of whom shall be a woman

b. Members age shall not be less than 35 years old
c. Possess a bachelors of degree from recognized university
d. Ten year knowledge and experience in dealing with problems relating to economics, law,
commerce, accountancy, industry& public affairs
e. All the above

18. The disqualification of the member is

a. Has been convicted and sentenced to imprisonment for an offence which , in the opinion of
the state govt involves moral turpitude
b. Is an undercharged insolvent
c. Is of unsound mind
d. All the above

19. Every appointment of district forum shall be made by the state govt on the
recommendation of a selection committee consisting of the following

a. President of the state commission shall be a chairman

b. Secretary, law dept of the state shall be a member
c. Secretary, incharge of dept dealing with consumer affair shall be a another member
d. All the above
20. Who will working as president in case absence of the president of state commission

a. Governor
b. Chief minister
c. A sitting judge of High court
d. Chief justice of highcourt

21. Mark the correct option

a. Every member of district forum shall hold office a term of 5 years or up to age 65 years
b. The member of district forum shall eligible for reappointment for another term
c. Members of district forum may resign his office in writing addressed to state government
d. All the above

22. Any person aggrieved by an order made by the District forum may prefer an appeal such
order to the State commission within

a. 60 days
b. 90 days
c. 1 month
d. Thirty days

23. Any person prefer an appeal to state commission shall be deposited amount in prescribed
manner

a. Fifty percent of that amount

b. Twenty five thousand rupees
c. Whichever is less of the above A&B
d. None of these

24. Information Technology (IT) Act 2000 came into force on .......?
A. 17 October 2000
B. 9 June 2000
C. 1 June 2000
D. 1 October 2000

25. What is/are component of IT Act 2000 ?

A. Legal Recognition to Digital Signatures
B. Regulation of Certification Authorities.
C. Digital Certificates
D. All the above

26. Information Technology (Amendment) Act, 2008 has come into force in ?
A. January 2008
B. October 2009
C. October 2008
D. January 2009
27. Controller of Certifying Authorities (CCA) work under ?
A. Prime Minister office
B. Reserve Bank of India
C. Ministry of Communication & IT
D. autonomous body

28. Which of the following is an example of Intellectual property ?

A. Patent
B. Trade Marks
C. Copyright
D. All of above
Ans: D

29. Intellectual Property Rights (IPR) protect the use of information and ideas that are of

a. Ethical value
b. Moral value
c. Social value
d. Commercial value

30. The term ‘Intellectual Property Rights’ covers

a. Copyrights
b. Know-how
c. Trade dress
d. All of the above

31. The following can not be exploited by assigning or by licensing the rights to others.

a. Patents
b. Designs
c. Trademark
d. All of the above

32. The following can be patented

a. Machine
b. Process
c. Composition of matter
d. All of the above

33. Trade mark

a. is represented graphically
b. is capable of distinguishing the goods or services of one person from those of others
c. may includes shapes of goods or combination of colours
d. All of the above
 34. Symbol of Maharaja of Air India is

a. Copyright
b. Patent
c. Trademark
d. All of the above

35. In India, the literary work is protected until

a. Lifetime of author
b. 25 years after the death of author
c. 40 years after the death of author
d. 60 years after the death of author

36. Design does not include

a. features of shape
b. composition of lines or colours
c. mode or principle of construction
d. None of the above

37. The agreement that is enforceable by law is known as

a. Valid agreement
b. Void agreement
c. Illegal agreement
d. Unenforceable agreement

38. Which of the following is (are) included in Geographical indications of Goods

a. Handicraft
b. Foodstuff
c. Manufactured
d. All of the above

1) A contract creates
a) rights in personam ,
b) b)rights in rem,
c) c)only rights and no obligations ,
d) d)only obligations and no rights.

2)A contract

a) may be void as originally entered into

b)may become void subsequent to its formation
c)cannot become void under any circumstances
d) may become void at the will of party.
6) The transactions collateral to an illegal agreement are

a) not affected in any manner ,

b)also tainted with illegality

c)voidable at the option of the plaintiff

d)void

8) Flaw in capacity to contract may arise from –

a) lack of free consent
b) lack of consideration
c) minority
d)absence of legal formalities.

9) Which of following result in an offer-

a) A declaration of intention b)an invitation to offer, c)an advertisement offering reward to

anyone who finds lost dog of the advertise, d)an offer made in a joke.

10) Acceptance may be revoked by the acceptor

a) t any time b)before the letter of acceptance reaches the offerer c)after the letter of
acceptance reaches the offeree d)before the death of the acceptor.

11) An advertisement to sell a thing by auction is

a) an offer b)an invitation to offer c)no offer at all d)a contract e) an obligation.

12) On theface of the ticket for a journey the words ―for conditions see back‖ are printed in
small print .The passenger –

a)is bound by the conditions whether he takes care to read them or not . b) is not bound by
the conditions c)may not take note of the conditions d)none of the above.
13) Anacceptance is not according to the mode prescribed but the offerer decides to keep quiet.
In such a case there is –

a) a contract, b) no contract, c)a voidable contract, d) an unenforceable contract.

14) There is a counter-offer when-

a)the offeree gives conditions for acceptance or introduces a fresh term in acceptance
b)the offerer makes a fresh offer c)the offeree makes some query . d )the offeree accepts it.

15) Consideration must move at the desire of –

a)the promisor, b) the promisee , c) promisor or any other third party , d)both the promisor and
the promisee . e)any third party

16) Consideration –

a)must move from the promisee , b)may move from the promisee or any other person c)may
move from the third party d) may move from the promisor.

17) Consideration must be something which the promisor –

a) is already bound to do ,b)is not already bound to do. c)may voluntarily do d)must not do.

18) Compromise of dispute claims –

a)is a good consideration for a contract b)is not a good consideration for a contract c) results in
a void agreement d)is not permitted by law.

19) A promiseto compensate ,wholly or in part , a person who has already voluntarily done
something for the promisor is

a)enforceable b)not enforceable because it is without consideration, c) void

d) voidable.

25)A person who is not party t a contract-

a)cannot sue, b)can sue , c) can sue only in well recognized cases d)none of

these.
26)Consideration in a contract –

a) may be past ,present or future, b)may be present or future only . c)must be present only.
D)must be future only.

27) A promise to subscribe to a charity .The promise is a

a) valid contract , b)voidable contract , c)void agreement d) void contract.

28) An agreement with or by minor is –

a)void b)voidable at the option of the minor c) voidable at the option of the other

party d) valid.

30)On attaining the age of majority a minor‘s agreement –

a) can be ratified by him b)cannot be ratified by him c)becomes void d)becomes valid.

31) A minor , by misrepresenting his age , borrows some money –

a) he can be sued for the fraud, b)he cannot be sued for the fraud c)he is liable to return the
money d) None of the above.

32) A person is usually of sound mind , but occasionally of sound mind –

a) he may enter in to a contract when he is of sound mind , b) he may not make a contract
even when he is of sound mind c)he cannot enter into a contract at all. d)None of the above.

33) A contract by an idot is –

a) voidable b) enforceable c)invalid d)void ab inito

34) Contracts made before war with an alien enemy which are against public policy are –

a) suspended and are revived after the war is over. b) dissolved c)not affected at all

d)void ab initio

37) The case of Mohiri Bibi v. Dharmodas Ghose (1903) deals with-

a)communication of offer b)communication of acceptance c)a minors agreements d) fraud e)a

lunatic‘s agreement.
38)Flaw in a capacity to contract may arise from –

a) want of consideration b)unsoundness of mind c)illegality of object d) uncertainty of object.

39) Where consent is caused by fraud or misrepresentation , the contract is –

a) voidable at the option of the aggrieved party b) void c) unenforceable d) not affected in any
manner .

40) Where both the parties to an agreement are under a mistake as a matter of fact essential to
the agreement ,the agreement I –

a) void b) voidable c )illegal d) not affected at all.

41) Merely because a contract was caused by one of the parties to it being under a mistake as to a
matter of fact , it is not-
a) voidable b) void c)affected at all d) none of the above.

42) Consent given to a contract under some misrepresentation by the other party makes the contract
–

a) void b) invalid c) unenforceable d) voidable

43) When a person positively asserts that a fact is true when his information does not warrant it
to be so, though he believes it to be true , there is –

a) misrepresentation b) fraud c) undue influence d) coercion.

44) Fraud exists when it is shown that a false representation has been made-

a) knowingly b)unknowingly c)unintentionally d)recklessly , not caring whether it is true or

false

45) A mere attempt at deceipt by a party to a contract –

a) is not fraud unless the other party is actually deceived b) is fraud whether the other party
has been deceived or not c) amounts to misrepresentation d ) none of the above.

46) When consent to an agreement is obtained by undue influence, the agreement is a –

a)contract voidable at the option of the party whose consent was so obtained b) void contract.
C) valid contract d)void agreement.
47) which of the following relationships raise presumption of undue influence?

a) landlord and tenant b)parent and child c)doctor and patient d) Husband and wife e)
Fiancé and fiancée f) creditor and debtor.

48) If there is error in cause ,the contract I

a) void b) voidable c) valid d)illegal

49) I there is error in consensus , the agreement is

a) void b)voidable c)avoid d)illegal e )not affected at all.

50) If there is a unilateral mistake as regards identity of a party caused by fraud of he other party ,
the contract is –

a) void ,b) voidable ,c)valid d)illegal

51) If there is a fraudulent misrepresentation as to the contents of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

52) If there is a fraudulent misrepresentation as to the character of a document , the contract is –

a) void ,b) voidable ,c)valid d)illegal

53) The Case of Cundy v. Lindsay (1878)deals with –

a)Coercion b)undue influence c)mistake as to the nature of transaction d) mistake as regards

identity
54) A promise made without the intention of performing it amounts to –

a)innocent misrepresentation b) fraud c)negligent Misrepresentation d) wrongful

misrepresentation

55) The3 unlawful detention of any property of a person to obtain his consent to a contract
amounts to –

a) misrepresentation b) fraud c) undue influence d) coercion.

56) The collateral transactions to an illegal

agreement are- a)Void, b) illegal, c)voidable

,d)not affected at all

57) An agreement made with an alien enemy is

a)unlawful on the ground of public policy b)unlawful because it becomes difficult to be

performed c) valid, d)voidable.

58) A person enters into an agreement whereby he is bound to do something which is

against his public or professional duty. The agreement is –

a) void on the ground of public policy b) valid , c)voidable d) illegal

59) Regulation as to the opening and closing of business in a market are

a)not unlawful even if they are in restraint of trade . b)unlawful because they are in restraint of
trade . c) void d) not valid

60) An employee , by the terms of his service agreement , is prevented from accepting a similar
engagement after the termination of his service .The restraint –

a) valid b)void c) illegal d)unenforceable

61) The case of nordenfelt v. maxim nordenfelt gun co. (1904)deals with
a ) agreement in restraint of legal proceedings, b)minor‘s agreements c)agreement in restraint of
trade
d)agreement in restraint of marriage.

62) A contract of life insurance is-

a) a contract of indemnity b)not a contract of indemnity c)a wagering agreement d)a contingent
agreement.

63) an agreement the meaning of which is not certain ,is-

a) void b) voidable c)valid d) illegal

64) Which of the following are wagering agreements,-

a) a crossword competition the prizes of which depend upon correspondence of the

competitors solution with a previously prepared solution, b)picture puzzles ,c) share market
transactions in which delivery of stocks and shares is intended to be given and taken d) a
contract of insurance, e) an agreement to buy a ticket for a lottery. f) commercial
transactions , if the intention is not to deliver the goods but only to pay the difference in
price g) a crossword competition involving a good measure of skill for its successful solution.
65) An agreement to do an impossible act is,

a) void b) voidable c) illegal d) enforceable under certain circumstances.

66) A wagering agreement is .

a) forbidden by law, b) immoral, c) opposed to public policy d) none of the above.

67) A contract of insurance is a –

a) contract of guarantee b ) contingent contract c) wagering agreement d)unilateral agreement.

68) Which of the following are contingent contracts?

a)contract of insurance b)contract of guarantee , c)contracts for the sale of goods on credit
d0 Wagering agreements

69) A contingent contract is –

a) void b) voidable c)valid d) illegal

70) A contract to pay B Rs. 10,000 if B s house is burnt – This is a

a) wagering agreement b)void c)voidable agreement d)contingent contract e) contract of

guarantee .

71) A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a year .A
‗s promise can be enforced when the ship

a) arrives Mumbai a damaged condition during the years b)is lost during the year c)is sunk
during the years
d)arrives Mumbai in a good condition during the year.

72) Promises forming consideration for each other are known as,

a)independent promises b)dependent promises c)reciprocal promises. d)mutual promises

73) Each party is a promisor and a Promisee in case of –

a)past consideration b)present consideration c)every contract d) reciprocal promises

74) When promisee refuses to accept performance from the promisor who offers

to perform ,it is – a)attempted performance , b) vicarious performance ,

c)tender d) frustration of contract.

75) Sale of goods for cash is an example of –

a)mutual and independent promises b) mutual and dependent promises c) mutual and
concurrent promises
d)conditional and dependent promises,.

76) When a party to a contract transfers his contractual rights to another , it is

known as ,- a)rescission of contract b) waiver of contract c)discharge of contract,

d) assignment of contract.

77) Where the debtor does not expressly intimate or where the circumstances attending on a
payment do not indicate any intention , the creditor –

a)may apply it to any lawful debt due b)May apply it even to a time barred debt.

78) When two or more persons have made a joint promise ,then unless a contrary intention
appears from the contract, all such persons must fulfill the promise –

a) jointly b) severally c)jointly and severally d)jointly or severally

79) Assignment by operation of law takes place –

a)by the mutual consent of parties b)by the will of either party c)when the subject matter of a
contract ceases to exist
d)by the death of a party to a contract.

80) A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal

representation of A are – a)Liable for Rs. 10000b) liable for Rs. 6000 c)not liable at

all d) liable for Rs. 3000.

81) Owing to a strike in the factory of A , he is not able to supply the goods to B as per the terms of
the agreement >
The agreement in such a case

a) is discharged b) is not discharged c) becomes void d) is voidable at the option of A.

82) If a contract contains an undertaking to perform an impossibility , the contract is –

a) void ab initio b)void c)voidable at the option of the plaintiff

d) illegal

83)An agreement to do an act impossible in itself –

a) is void, b) is voidable c)is void ab initio d)becomes void when

impossibility is discovered

84)If a new contract is substituted in place of an existing contract , it is

called –

a)alteration b)rescission c) novation d)waiver

,e)remission

85)The case of Taylor v. caldwell (1883)deals with-

a)discharge of contract by destruction of subject matter , b) anticipatory breach of contract

c) discharge of contract by death of a party d)breach of contract.

86) A lends Rs. 500 to B . He later tells B that he need not repay the amount , the contract

is discharged by – a)breach b ) waiver c) novation d)performance

87) Acontract has become more difficult of performance due to some un-contemplated
events or delays .The contract –

a)is discharged b) is not discharged c)becomes void d) becomes voidable.

Where a contract could not be performed because of the default by a third person on whose
88)
work the promisor relied , it –

a) is not discharged b) is discharged c)becomes void d)becomes voidable.

89) Acreditor agrees with his debtor and a third party to accept that third party as his
debtor . The contract is discharged by, -

a) performance b)alteration c)waiver d)remission e) remission

90) The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954)deals with-

a) agreement opposed to public policy b) Supervening impossibility c) contract of

guarantee d) agency 91)A undertakes to paint a picture of B .He dies before he paints

the picture . The contract –

a) is discharged by death b)becomes voidable c)becomes voidable at the option of the legal
representatives of A . d)will have to be performed by the legal representatives of A.

92) The court may grant rescission where the contract is-

a) voidable at the option of the plaintiff b)void c)unenforceable

d) illegal 93)The foundation of modern law of dameges was laid

down in , -

a) Tinn v . Hoffman b) Taylor v. caldwell c)Hadley v. Baxendale d) Addis

v. Gramophone 94)Specific performance may be ordered by the court when –

a) the contract is voidable b) damages are an adequate remedy c)damages are not an
adequate remedy d)the contract is uncertain.

95) The measure of damages in case of breach of a contract is the difference between the –

a)contract price and the market price at the date of breach b) contract price and the
maximum market price during the term of the contract c) contract price and the price at which
the plaintiff might have sold the goods ,d) contract price and the price fixed by court.

96) The case of Hadley v. Baxendale (1854) deals with

a) anticipatory breach of contract. b) quantum of damages c)supervening impossibility d)quasi

contract.
97) Anticipatory breach of a contract takes place –

a)during the performance of the contract b)at the time when the performance is due. c) before
the performance is due d) at the time when the contract is entered into.

98)In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the
customer ,the court may award----

a) ordinary damages ,b) nominal damages c)exemplary damages d) contemptuous damages.

99) Ordinary damages are damages which---

a) arise in the usual course of things from the breach b)which are in the contemplation of the
parties at the time when the contract is made c) are agreed in advance d) are given by way of
punishment for breach of contract.

100)A agreed to sell 100 shares to B at Rs. 75 per share delivery to be given on the 1st march ,
B refused to accept delivery on 1st march as price had gone down to Rs. 60 per share
.Subsequently A sold these shares at Rs.92 per share –

a)A cannot recover any damages from B b)A will have to restore to BRs. 1700 i.e. the profit
he made c) A caan recover dameges to be determined by the President of the stock
exchange.

101) Exemplary damages are –

a) allowed in case of dishounor of a cheque by a banker having sufficient funds b) the

difference between the contract price and the market price c)allowed where in case of breach of
a contract , the plaintiff has not suffered any loss. D) none of these.

102) when an agreement is discovered to be void ,any person who has received any advantage
under such agreement

a) is bound to restore it b) is not bound to restore it c)is not bound to return it .d) may retain it

e) none of these 104)A minor has been supplied necessaries on credit-

a) he is not liable b) he is personally liable c) his estate is liable d) he is not personally liable

105) A person who finds good belonging to another and takes them into his custody ,is
subject to the same responsibility as a-

a) bailee b) true owner c) bailor d) pledge.

106) A finder of lost goods is a –

a) bailor b) Baile c) true owner d) thief

108) A contract of indemnity is a –

a) a contingent contract b) wagering contract c)quasi contract d) void contract

109) The definition of a contract of indemnity as given in the Indian contract act ,1872 includes

a)express promises to indemnity b)implied promises to indemnity c) cases where loss arises
from accidents and events not depending on the conduct of the promisor or any other person
d)cases where the loss is caused by the conduct of the promisor himself or by the conduct
of any person

110) S and P go into a shop ,S says to the shopkeeper ,C let P have the goods and if he does not pay
you , I will
―This is a –

a)contract of guarantee b)contract of indemnity c)wagering agreement d) quasi contract

111) Any variance made without surety‘s consent in the terms of the contract between the
principal debtor and the creditor discharges the surety –

a) as to transactions prior to variance b) as to transactions subsequent to variance c) as to all

transactions d) from his liability under the guarantee.

112) A guarantee obtained by a creditor by keeping silence as to material circumstances is –

a) valid b)voidable c)unenforceable d) invalid

113) Where there are co-sureties ,a release by the creditor of one of them –

a) discharges the other co-sureties b) does not discharge the other co-sureties c)makes all the
co-sureties immediately liable d) makes the contract of guarantee void.

114) The right of subrogation in a contract of guarantee is available to the

a) creditor b) principal debtor c) surety d)indemnified

115) The omission of the creditor to sue within the period of limitation –

a) discharges the surety b) does not discharge the surety c) makes the contract of guarantee
void d)makes the contract of guarantee illegal.
116) In a sale, the property in goods –
a) is transferred to the buyer , b) is yet to be transferred to the buyer c) may be transferred at
a future time d) is transferred when goods are delivered to the buyer e)is transferred when the
buyer pays the price

117) In a sale ,if the goods are destroyed , the loss falls on –

a) the buyer b) the seller c) partly on buyer and partly on seller d)the seller if price has not
been paid e) by the buyer.

118) The term property as used in the sale of goods act 1930 means

a) possession b ) ownership c) ownership and possession both d) the subject matter of contract of
sale.

119) If a price is not determined by the parties in a contract of sale , the buyer is bound to pay –
a)the price demanded by the seller ,b) a reasonable price c) the price which the buyer thinks is
reasonable d) the price to be determined by a third independent person.

120) The doctrine of caveat emptor applies –

a) incase of implied conditions and warranties b) when the buyer does not intimate the
purpose to the seller and depends upon his own skill and judgment c) when goods are sold by
sample d) when goods are sold by description

121) If a sale is by sample as well as by description , the implied condition is that the goods shall
correspond with –

a) sample b) description c) both sample and description d) either sample or description .

122) In a sale , there is an implied condition on the part of the seller that he –

a) has a right to sell the goods b) is in possession of the goods c) will have the right to sell d)

will acquire the goods 123)A condition is a stipulation which is a –

a) essential to the main purpose of contract of sale b) not essential to the main purpose of
contract of sale ,c) collateral to the main purpose of contract of sale d) none of the above.

124) In case of breach of a warranty , the buyer can –

a) repudiate the contract b) claim damages only c) return the goods d) refuse to pay the price
e) refuse to take delivery of the goods .

125) In case of breach of a warranty , the buyer can –

a) claim damages only b) repudiate the contract c)cannot return the goods d) refuse to take
delivery of the goods
1. Contract=Agreement + ________
A. enforceability by law
B. rules
C. clauses
D. None of the above
ANSWER: A
2. An agreement to do an impossible act
A. legal
B. void
C. voidable
D. illegal
ANSWER: B
3. An advertisement to sell a thing by auction is _____________.
A. an offer.
B. an invitation to offer.
C. no offer at all.
D. a contract.
ANSWER: B
4. a wagering agreement is _______.
A. immoral
B. forbidden by law
C. opposed to public policy
D. Legal prohibition
ANSWER: B
5. A contract of guarantee should be _______.
A. oral
B. written
C. oral or written
D. none of the above
ANSWER: C
6. Which the following strikes only at document and not transactions?
A. The Transfer of Property Act, 1882
B. The Registration Act, 1908
C. both (A) and (B)
D. None of these
ANSWER: C
7. The offer may be communicated _____________.
A. orally
B. By conduct only
C. By a written mode
D. All the above
ANSWER: D
8. Which of the following is indicated by the abbreviation Ltd at the end of a company’s name?
A. The shares are not transferable
B. The shares may not be offered to the public
C. The shares are freely transferable on the stock exchange
D. None of the above
ANSWER: B
9. Agreement=offer+ _______.
A. acceptance
B. rules
C. clause
D. validity
ANSWER: A
10. A written ordinary resolution requires the approval of which of the following?
A. More than 50% of those actually voting
B. More than 50% of those entitled to vote
C. Unanimous approval of those entitled to vote
D. All of the above
ANSWER: A
11. A sub-bailee is a person to whom the actual possession of goods is transferred by someone
A. who is himself not an owner of goods
B. who has a present right to possession of them as bailee of the owner
C. both (A) and (B)
D. None of these
ANSWER: C
12. A contract creates_____________.
A. rights in personam.
B. rights in rem.
C. only rights no obligations.
D. only obligations and no rights.
ANSWER: B
13. A supplies B, a lunatic, with necessaries suitable to his condition in life.
A. A is entitled to be reimbursed from Bs property
B. A is not entitled to be reimbursed from Bs property
C. A is entitled to be given a share in Bs property
D. None of these
ANSWER: A
14. An agreement not enforceable by law is said to _____________.
A. void.
B. voidable.
C. valid.
D. unenforceable.
ANSWER: A
15. Which parties are bound by the terms of the tender when one party submits a tender?
A. The person submitting the tender
B. The person requesting the tender
C. Neither party
D. Both parties
ANSWER: A
16. In the context of contract law, a bid at an auction is which of the following?
A. An invitation to treat
B. An acceptance
C. A counter-offer
D. An offer
ANSWER: D
17. A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life.
A. A is entitled to be reimbursed from B’s property
B. A is not entitled to be reimbursed from B’s property
C. A is entitled to be given a share in B’s property
D. None of these
ANSWER: A
18. For necessaries of life _____________.
A. A minor is liable
B. A minor’s estate is liable
C. The guardian is liable
D. All the above
ANSWER: B
19. What is the effect of a finding of contributory negligence in the law of tort?
A. It removes the requirement to pay damages
B. It reverses the payment of damages
C. It decreases the level of damages
D. All the above
ANSWER: C
20. A specific offer can be accepted by _____________.
A. any person.
B. any friend of offered.
C. a person to whom it is made.
D. any friend of offeree.
ANSWER: C
21. Consideration _____________.
A. money
B. money worth
C. promise
D. all the above
ANSWER: D
22. Consideration must be something which the promisor _____________.
A. is already bound to do.
B. is not already bound to do.
C. may voluntarily do.
D. must not do.
ANSWER: B
23. A supports B’s infant son. B promise to pay A’s expenses in so doing
A. This is not a contract
B. This is a contract
C. either (A) or (B)
D. None of these
ANSWER: B
24. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own.
A. He is not bound to pay A for them
B. He is bound to pay partially A for them
C. He is bound to pay A for them
D. None of these
ANSWER: C
25. A contracts to pay B a sum of money when B marries C. C dies without being married to B.
A. The contract still can be forced
B. The contract becomes void
C. Either (A) or (B)
D. None of these
ANSWER: B
26. Contributory negligence arises as a result of the fault of which of the following?
A. A third party
B. The respondent
C. The claimant
D. None of the above
ANSWER: C
27. An agreement made without consideration is _____________.
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
28. A promise to subscribe to a charity. The promise is a _____________.
A. voidable contract.
B. void agreement.
C. void contract.
D. valid contract.
ANSWER: C
29. A contracts to take in cargo for B at a foreign port. A’s Government afterwards declares war against the
country in which the port is situated.
A. The contract cannot become void when war is declared
B. The contract becomes partly void when war is declared
C. The contract becomes void when war is declared
D. None of these
ANSWER: C
30. On attainting the age of majority a minors agreement _____________.
A. can be ratified by him.
B. cannot be ratified by him.
C. becomes void.
D. becomes valid.
ANSWER: B
31. Breach of which of the following terms does NOT allow the possibility of the aggrieved party terminating
the contract?
A. A condition
B. An innominate term
C. A warranty
D. All the above
ANSWER: C
32. Which of the following, in the context of entering into a contract, constitutes a binding offer to sell a
unique item of furniture?
A. Placing an advert in a newspaper with a price attached
B. Placing it on display inside a shop with a price attached
C. Telling someone the price you may be willing to accept for it
D. Telling someone you will reduce the marked price on it by 10%
ANSWER: D
33. Abe issued an invitation to tender for a contract and Bea submitted her terms. Which of the following
statements is accurate?
A. Abe made an offer and Bea made a counter-offer
B. Abe made an offer which Bea accepted
C. Both Abe and Bea made invitations to treat
D. Abe made an invitation to treat and Bea made an offer
ANSWER: D
34. A contract by an idiot is_____________.
A. voidable.
B. enforceable.
C. invalid.
D. void ab initio.
ANSWER: D
35. A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by post.
A. The debt is discharged only when A receives the due amount
B. The debt is discharged as soon as B puts into the post a letter containing the note duly addressed to A
C. Either (A) or (B)
D. None of these
ANSWER: B
36. A fraudulently informs B that A’s estate is free from encumbrance. B thereupon buys the estate. The estate is subject to a mortgage.
A. B may avoid the contract
B. B may insist on its being carried out, and the mortgage- debt redeemed
C. Either (A) or (B)
D. None of these
ANSWER: C
37. A gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a certain day. He forfeits his recognizance.
A. He is not liable to pay the penalty
B. He is liable to pay the penalty
C. He is liable to partially pay the penalty
D. None of these
ANSWER: B
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 amount than the sum due in respect of the advance.
A. A did not employ undue influence
B. A employs undue influence
C. Either (A) or (B)
D. Either (A) or (B)
ANSWER: B
39. A hires a horse in Calcutta from B expressly to march to Benaras. A rides with due care, but marches to Cuttack instead. The horse accidentally
falls and is injured.
A. A is not liable to make compensation to B for the injury to the horse
B. A is partially liable to make compensation to B for the injury to the horse
C. A is liable to make compensation to B for the injury to the horse
D. None of these
ANSWER: C
40. Which of the following is not a type of cybercrime?
A. data theft
B. stalking
C. hacking
D. antivirus
ANSWER: D
41. Which of the following statements relating to limited liability partnerships is correct?
A. They are limited to a maximum of 20 members
B. They must have a minimum of two members
C. They must have at least one unlimited member
D. All the above
ANSWER: B
42. Cyber-crime can be categorized into ________ types.
A. 2
B. 3
C. 4
D. 5
ANSWER: A
43. Which of the following is not a type of peer-to-peer cyber-crime?
A. phishing
B. trojans
C. MitM
D. credit card leak
ANSWER: D
44. In the context of the law of agency, an agent will NOT be liable for a contract in which of the following instances?
A. Where the agent fails to disclose that they are acting as such
B. Where the agent intends to take the benefit of the contract and does not disclose they are acting as an agent
C. Where the agent acts on their own behalf although claiming to be an agent
D. None of the above
ANSWER: A
45. Which of the following is not an example of a computer as weapon cyber-crime?
A. Credit card fraudulent
B. Spying someone using keylogger
C. IPR Violation
D. Pornography
ANSWER: B
46. Which of the following can be accepted so as to form a binding contract?
A. A supply of information
B. A quotation of price
C. A statement of intent
D. An agreement to enter into a future contract
ANSWER: B
47. Contracts are legally enforceable agreements. Which of the following statements regarding contractual agreements is true?
A. They must be in writing
B. They must be evidenced in writing
C. They need not be in writing
D. None of the above
ANSWER: C
48. Which of the following is not done by cybercriminals?
A. Unauthorized account access
B. Mass attack using Trojans as botnets
C. Email spoofing and spamming
D. Report vulnerability in any system
ANSWER: D
49. Which of the following statements in relation to the issuing of bills of lading is true?
A. Risk passes to the shipper
B. Risk remains with the seller
C. Risk passes to the carrier
D. Risk passes to the buyer
ANSWER: D
50. What is the name of the IT law that India is having in the Indian legislature?
A. India’s Technology (IT) Act, 2000
B. India’s Digital Information Technology (DIT) Act, 2000
C. India’s Information Technology (IT) Act, 2000
D. The Technology Act, 2008
ANSWER: C

51. In which year India’sIT Act came into existence?

A. 2000
B. 2001
C. 2005
D. 2013
ANSWER: A
52. ________ agency is the most common form of agency.
A. Incidental
B. Express
C. Apparent
D. Implied
ANSWER: B
53. A(n) ________ is a contract a principal and agent enter into that says the principal cannot employ another agent other than the one stated.
A. ratified contract
B. exclusive principal contract
C. apparent agency contract
D. exclusive agency contract
ANSWER: D
54. Agency by ________ occurs when (1) a person misrepresents himself or herself as another’s agent when in fact he or she is not and (2) the
purported principal accepts the unauthorized act.
A. indemnification
B. ramification
C. ratification
D. indoctrination
ANSWER: C
55. Apparent agency is also referred to as ________.
A. agency by estoppel
B. express agency
C. authorized agency
D. agency by default
ANSWER: A
56. What is the full form of ITA-2000?
A. Information Tech Act -2000
B. Indian Technology Act -2000
C. International Technology Act -2000
D. Information Technology Act -2000
ANSWER: D
57. Under which section of IT Act, stealing any digital asset or information is written a cyber-crime.
A. 65
B. 65D
C. 70
D. 17
ANSWER: A
58. What is the punishment in India for stealing computer documents, assets or any software source code from any organization, individual, or from any
other means?
A. 6 months of imprisonment and a fine of Rs. 50,000
B. 1 year of imprisonment and a fine of Rs. 100,000
C. 2 years of imprisonment and a fine of Rs. 250,000
D. 3 years of imprisonment and a fine of Rs. 500,000
ANSWER: D
59. The common law doctrine of ________ is based on the legal theory of ________ liability.
A. respondeat superior; nefarious
B. respondeat superior; vicarious
C. respondeat inferior; nefarious
D. respondeat inferior; vicarious
ANSWER: B
60. What is the updated version of the IT Act, 2000?
A. 2007
B. 2008
C. 2010
D. 2012
ANSWER: B
61. A(n) ________ agency results if a third party entering into a contract knows (1) that the agent is acting as an agent for a principal and (2) the actual
identity of the principal.
A. partially disclosed
B. undisclosed
C. inherently disclosed
D. fully disclosed
ANSWER: D
62. A(n) ________ agency occurs if the agent discloses his or her agency status but does not reveal the principal’s identity and the third party does not
know the principal’s identity from another source.
A. fully disclosed
B. partially disclosed
C. undisclosed
D. inherently disclosed
ANSWER: B
63. A principal accepts an agent’s unauthorized contract through ________ of the contract.
A. subornation
B. subrogation
C. ramification
D. ratification
ANSWER: D
64. Principals often employ persons and businesses that are not their employees to perform certain tasks on their behalf. These persons and businesses
are called ________ contractors.
A. dependent
B. sub
C. general
D. independent
ANSWER: D
65. Which of the following is not a method of terminating an agency relationship by acts of the parties?
A. mutual agreement
B. bankruptcy of the principal
C. lapse of time
D. achievement of agency purpose
ANSWER: B
66. Which of the following is not a method of terminating an agency relationship by operation of law?
A. death of either the principal or the agent
B. insanity of either the principal or the agent
C. mutual agreement
D. bankruptcy of the principal
ANSWER: C
67. What type of cyber-crime, its laws and punishments does section 66 of the Indian IT Act holds?
A. Cracking or illegally hack into any system
B. Putting antivirus into the victim
C. Stealing data
D. Stealing hardware components
ANSWER: A
68. he Sale of Goods Act, was enacted on
A. 15 March 1930
B. 18 April 1930
C. 5 April 1980
D. None of these
ANSWER: A
69. The Sale of Goods Act, was enforced on
A. 1st day of May, 1930
B. 1st day of June, 1930
C. 1st day of July, 1930
D. None of the above
ANSWER: C
70. The Sale of Goods Act, 1930 is based on
A. US Sale of Goods Act
B. English Sale of Goods Act
C. Indian Sale of Goods Act
D. None of the above
ANSWER: B
71. Section 2, of The Sale of Goods Act, is about
A. definitions
B. articles
C. clauses
D. none of these
ANSWER: A
72. As per-section 2(1), a person who buys or agrees to buy goods is called
A. buyer
B. seller
C. customer
D. none
ANSWER: A
73. The voluntary transfer of possession from one person to another is called
A. delivery
B. transfer
C. hand over
D. none
ANSWER: A
74. As per section 2 sub-section 8, of the Sales of Goods Act, insolvent means a person
A. Who has ceased to pay his debts in the ordinary course of business
B. Or can not pay his debts as they become due
C. Both (a) and (b)
D. None of above
ANSWER: C
75. As per section 2(12), of the Sale of Goods Act, quality of goods include
A. State of goods
B. Conditions of goods
C. Both (a) and (b)
D. None of above
ANSWER: C
76. The goods identified and agreed upon at the time a contract of sale is made are called
A. ordinary goods
B. specified
C. opportunity
D. none of the above
ANSWER: B
77. There are_____, essential requisites of sale
A. 2
B. 3
C. 5
D. none of the above
ANSWER: D
78. Acceptance may be revoked by the acceptor
A. at anytime
B. before the letter of acceptance reaches the offerer
C. before the death of other party
D. none
ANSWER: B
79. consideration must move at the desire of—-
A. the promisor
B. the promisee
C. promisor or any other party
D. any other party
ANSWER: A
80. An agreement with a minor is—-
A. valid
B. void
C. voidable
D. none
ANSWER: B
81. on attaining the age of majority a minor’s agreement
A. becomes void
B. becomes valid
C. can be ratified by him
D. cannot be ratified by him
ANSWER: D
82. A contract by an idiot is—-
A. voidable
B. enforceable
C. invalid
D. void ab initio
ANSWER: D
83. The unlawful detention of any property is ——
A. undue influence
B. fraud
C. mistake
D. none of these
ANSWER: A
84. If a new contract is substituted in place of an existing contract—
A. alteration
B. rescission
C. waiver
D. novation
ANSWER: D
85. In case of breach of warranty,the buyer can —–
A. repudiate
B. return the goods
C. claim damages
D. none
ANSWER: C
86. An administrator is appointed to realise a hierarchy of objectives. What is an administrator’s first and principal object ive?
A. To achieve a better result for the company’s creditors as a whole than would be likely if the company were wound up.
B. To realise property in order to make a distribution to one or more secured creditors.
C. To rescue the company as a going concern.
D. To wind the company up and distribute the assets to persons entitled to them.
ANSWER: C
87. An administrator can be appointed in one of several different ways. Which ONE of the following is not a valid method of appointment?
A. An administrator can be appointed by the court.
B. An administrator can be appointed by a floating charge holder.
C. An administrator can be appointed by the company’s auditor.
D. An administrator can be appointed by the company.
ANSWER: C
88. Regarding the proposal for a company voluntary arrangement, which ONE of the following statements is NOT true?
A. If the company is in administration, the proposal will be made by the administrator.
B. If the company is in liquidation, the proposal will be made by the liquidator.
C. If the company is neither in administration or liquidation, the proposal can be made by the directors.
D. If the company is neither in administration or liquidation, the proposal can be made by the members or creditors.
ANSWER: C
89. Regarding the appointment of a receiver, which ONE of the following statements is NOT true
A. A receiver may be a natural person or a body corporate.
B. A charge holder can appoint a receiver if the instrument that created the charge states so.
C. The court can appoint a receiver upon an application from a creditor.
D. An undischarged bankrupt cannot normally act as a receiver.
ANSWER: A
90. Which ONE of the following does NOT have the right to petition the court for a compulsory winding-up order?
A. A member of the company.
B. Any creditor of the company.
C. The directors of the company.
D. The auditor of the company.
ANSWER: D
91. A compulsory winding-up order can only be made on a number of specified grounds. The majority of such orders are made on the basis of which
ground?
A. Where the company has resolved, by special resolution, to compulsorily wind up the company.
B. Where the company is an ‘old public company.’
C. The company is unable to pay its debts.
D. Where the company does not commence business within a year from its incorporation.
ANSWER: C
92. Which ONE of the following statements describes the difference between a members’ voluntary winding up and a creditors’ voluntary winding-up
A. If a majority of the directors make a declaration of solvency, the winding up will be a members’ voluntary winding up. If no such declaration is
made, it will be a creditors’ voluntary winding up.
B. A creditors’ voluntary winding up is commenced by the creditors, whereas a members’ voluntary winding up is commenced by the members.
C. A members’ voluntary winding up is commenced by passing a special resolution, whereas a creditors’ voluntary winding-up does not require a
special resolution.
D. None of the above
ANSWER: A
93. How does fraudulent trading under the Companies Act 2006 differ to fraudulent trading under the Insolvency Act 1986?
A. Fraudulent trading under the Companies Act 2006 can apply at any time, whereas fraudulent trading under the Insolvency Act 1986 can only apply
during the course of a winding-up.
B. Fraudulent trading under the Companies Act 2006 imposes civil liability only, whereas fraudulent trading under the Insolvency Act 1986 imposes
criminal liability also.
C. There is no difference – both provisions are identical.
D. Fraudulent trading under the Companies Act 2006 only applies to registered companies, whereas fraudulent trading under the Insolvency Act can
also apply to partnerships and sole proprietorships.
ANSWER: A
94. compromise of disputed claims
A. results in a void agreement
B. good consideration
C. not a good consideration
D. none of these
ANSWER: B
95. Which two types of business structure are created via a process of incorporation?
A. Companies and sole proprietorships.
B. Partnerships and limited liability partnerships.
C. Companies and limited liability partnerships.
D. Companies and partnerships.
ANSWER: C
96. The main object of a contract of sale is —-
A. transfer of possession
B. transfer of property
C. delivery of goods
D. payment of price
ANSWER: B
97. An application to incorporate a company by registration must contain certain information. Which ONE of the following pieces of information is not
required?
A. Whether the member’s liability will be limited or unlimited.
B. The names of the company’s proposed officers.
C. The intended address of the company’s registered office.
D. The proposed objects of the company.
ANSWER: D
98. Concerning a company’s liability, which ONE of the following statements is true?
A. A company cannot be convicted of a crime that requires proof of mens rea.
B. A company will not be found liable for the acts of its directors – the directors will be personally liable instead.
C. A company will only be vicariously liable for the acts of its employees if the employee was sufficiently senior within the company.
D. Where liability requires a level of knowledge, the liability of employees and directors can be attributed to the company.
ANSWER: D
99. In a sale, if the goods are destroyed, the loss falls on________________
A. The buyer.
B. The seller.
C. Partly on the buyer and partly on the seller.
D. The seller if price has not been paid.
ANSWER: A
100. What is ‘corporate personality?’
A. Corporate personality means that the members in general meeting are regarded by the law as a person.
B. Corporate personality means that the board of directors is regarded by the law as a person.
C. Corporate personality means that the company as an entity is regarded by the law as a person.
D. Corporate personality means that all of the companies within a corporate group are regarded by the law
as one person.
ANSWER: C
101. The agreement made with an alien enemy is
A. valid
B. voidable
C. unlawful
D. difficult
ANSWER: C

102. consideration is —-
A. need not be adequate
B. reasonable
C. both
D. none of these
ANSWER: A
103. Consent given under coercion makes the contract—–
A. void
B. valid
C. voidable
D. invalid
ANSWER: C
104. What is known as a charter of a Company?
A. Memorandum of Association
B. Bye-laws
C. Articles of Association
D. Prospectus.
ANSWER: A
105. The name of a company can be changed by________________.
A. an ordinary resolution
B. a special resolution
C. the approval of the union government
D. a special resolution and with the approval of the central government
ANSWER: A
106. The __________defines a companys relations with the outside world.
A. prospectus .
B. memorandum of association.
C. articles of association .
D. statement in lieu of prospectus
ANSWER: B
107. Mark out the type of alteration that is permitted in the articles of association____
A. that may not be in the company’s interest.
B. that is contrary to the provisions of the companies act.
C. that increases a members liability without his written consent.
D. that is consistent with the memorandum of association
ANSWER: D

108. Which of the following companies must file a statement in lieu of prospectus?
A. A private limited company.
B. A cooperative society.
C. A company that has issued a prospectus.
D. A public company that has not issued a prospectus
ANSWER: D
109. The most important document of a company is its__________.
A. prospectus.
B. annual report.
C. memorandum of association.
D. articles of association
ANSWER: C
110. In an agreement to sell, the seller gets for price if________
A. The goods have been delivered to the buyer.
B. The goods have not been delivered to the buyer.
C. There is a specific agreement.
D. It is not a specific agreement.
ANSWER: C
111. In a contract of sale, unless goods are ascertained, there is______________
A. A sale.
B. An agreement to sell.
C. A void agreement.
D. An unenforceable agreement.
ANSWER: B
112. The rules and regulations for the internal management of a company are contained in its___.
A. prospectus .
B. annual report .
C. memorandum of association .
D. articles of association
ANSWER: D
113. A/an _______may become a director of a company.
A. partnership firm .
B. person of unsound mind .
C. individual .
D. body corporate
ANSWER: C
114. How many directors of a public company, unless the articles provide otherwise, must be appointed by the company in general meeting
A. All the directors .
B. One half of the directors .
C. Two-thirds of the directors .
D. Three-fourths of the directors
ANSWER: C
115. Which of the following is beyond the powers of the board of directors?
A. To issue debentures .
B. To make loans .
C. To remit the payment of any debt due by a director .
D. To issue prospectus
ANSWER: C
116. Holding company means a company ______________.
A. which holds other company.
B. a government company.
C. a chartered company.
D. a subsidiary company
ANSWER: A
117. The partnership entity may be regarded as ____________.
A. a legal entity .
B. an accountable entity .
C. both a legal and accountable entity .
D. neither a legal nor an accountable entity
ANSWER: D
118. A promoter is a person who ______________.
A. is a director .
B. is a relative of the company .
C. is a wellwisher of the company .
D. takes part in the companys incorporation
ANSWER: D
119. The amount of minimum subscription may be learnt from the ______________.
A. prospectus.
B. memorandum of association.
C. articles of association .
D. records of general meetings
ANSWER: A
120. When can a private company commence business ?
A. at any time .
B. after applying for registration.
C. after obtaining the certificate of incorporation.
D. after obtaining the certificate of commencement of business
ANSWER: C
121. The doctrine of constructive notice implies that __________.
A. with the registrar of companies
B. every person dealing with the company is deemed to have notice of the documents field
C. regularity of proceedings need be enquired into a notice of a weeks period is to be given for every
exchange of correspondence
D. indoor management
ANSWER: B
122. A letter of provide must be demanded in the transmission of shares when a person______.
A. is declared insolvent .
B. misbehaves .
C. becomes of unsound mind .
D. has died
ANSWER: D
123. The right of lien excises by an unpaid seller is to _________
A. Retain possession.
B. Regain possession.
C. Recover price and other charges.
D. Recover damages.
ANSWER: A
124. ——— is the constitution of the company
A. memorandum
B. articles
C. prospectus
D. ownership
ANSWER: A
125. Which of the following are characteristics of a company ?
A. It has unlimited liability.
B. It exists only in contemplation of law
C. It has not a perpetual succession
D. It comes to an end on the death of all its members
ANSWER: B
126. The liability of a shareholder in a company limited by shares is ____________.
A. unlimited .
B. limited by guarantee.
C. limited to the unpaid value of shares subscribed by him.
D. none of the above
ANSWER: C
127. The altered Memorandum must be filed with the Registrar within ______________.
A. 1 month of the company Law Boards order .
B. 2 months of the company Law Boards order.
C. 3 months of the company Law Boards order.
D. 4 months of the company Law Boards order
ANSWER: C
128. Which of the following companies need not have their own articles of Association ?
A. unlimited companies.
B. companies limited by guarantee.
C. private companies limited by shares.
D. public companies limited by shares
ANSWER: D
129. Contract which is inferred from the act of the parties is called___________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
ANSWER: C
130. Contract is one which is made by words spoken or words is called____________.
A. quasi contract.
B. express contract.
C. implied contract.
D. executed contract.
ANSWER: B
131. the Articles of a company conflict with the Memorandum _______________.
A. the Articles shall prevail.
B. the Memorandum shall prevail
C. the directors will resolve the conflict.
D. the court will resolve the conflict
ANSWER: A
132. A threat to commit suicide amounts to __________.
A. fraud.
B. undue influence.
C. coercion.
D. mistake.
ANSWER: C
133. Agreement in restraint of marriage is ___________.
A. valid.
B. voidable.
C. coercion.
D. void.
ANSWER: D
134. Quantum meruit means __________.
A. let the buyer beware.
B. as long as.
C. as soon as.
D. as much as earned.
ANSWER: D
135. The memorandum and Articles of a company are open to inspection by ___________.
A. the members of the company
B. the members and creditors of the company.
C. everybody .
D. the Registrar
ANSWER: C
136. A guarantee which is given for the good conduct of a person is called ___________.
A. prospective guarantee.
B. specific guarantee.
C. fidelity guarantee.
D. continuing guarantee.
ANSWER: C
137. A person who acts as an agent as well as guarantor is called ________.
A. factor.
B. brocker.
C. delcredere agent.
D. banker agent.
ANSWER: A
138. A statement in lieu of prospectus is required to be issued ___________.
A. by all companies which issue shares or debentures
B. by public companies when shares are issued among friends and relatives.
C. by private companies as they do not issue shares to the public
D. by all companies
ANSWER: B
139. An agreement made without consideration ____________.
A. valid.
B. voidable.
C. coercion.
D. void.
ANSWER: D
140. A promise made without any intention of performing it is ______________.
A. fraud.
B. undue influence.
C. misrepresentation.
D. mistake.
ANSWER: C
141. Share capital of a company means______________.
A. equity share capital .
B. preference share capital
C. equity and preference share capital .
D. equity and preference share capital and debentures
ANSWER: C
142. A shareholder in a company___________.
A. can be its debenture holder
B. cannot be its debenture holder
C. alone can become its debenture holder
D. must also become its debenture holder within a year of being a shareholder
ANSWER: A
143. An agreement enforceable by law is called as ___________.
A. valid contract.
B. voidable contract.
C. executed contract.
D. void contract.
ANSWER: A
144. The ________defines the scope of a company’s activities.
A. prospectus .
B. statutory declaration .
C. memorandum of association .
D. articles of association .
ANSWER: C
145. _________ companies must have their own Articles.
A. Government companies.
B. Unlimited companies.
C. Companies limited by shares.
D. Registered companies.
ANSWER: B
146. The duties of Company Secretary s regarding company meetings are restricted upto_____.
A. before company meeting.
B. during company meeting
C. after company meeting.
D. ln all the above situations
ANSWER: D
147. A private company ________issue deferred shares with disproportionate voting rights.
A. can only
B. can.
C. cannot.
D. can with the prior approval of the government
ANSWER: A
148. Shares can be issued_________.
A. at par.
B. at discount.
C. at premium.
D. all of the above
ANSWER: D
149. Identify those persons who do not enjoy the right of genera lien
A. Finder of goods
B. Factors
C. Bankers
D. None
ANSWER: A
150. Ascertained goods means____ goods
A. Specific
B. General
C. Goods sent for approval basis
D. None
ANSWER: A

1. Indian Contract Act extends to the whole of India excepts to the state of?
a. Assam
b. Jammu & Kashmir
c. West Bengal
d. None of these
Ans: B
2. An agreement enforceable by law is called?
a. Void
b. Promise
c. Contract
d. All of these
Ans: C

3. Chapter I of the Indian Contract Act deals the ______ of proposals?

a. Communication
b. Revocation
c. Acceptance
d. All of these
Ans : D
4. In order to convert a proposal into a promise the acceptance must...?
a. Absolute
b. Unqualified
c. Absolute & Unqualified
d. None of these
Ans: C
5. Agreement means ________________.
a. Offer + acceptance
b. Offer + contract
c. Contract + acceptance
d. Enforceable by law
Ans:A
6. The two contracting parties must agree as regards the subject-matter of the
contract at the same time & in the same sense is called as __________.
a. personam
b. consensus-ad-idem
c. reciprocal promise
d. accepted proposal
Ans: B
7. Technical term of void contract is _________.
a. voidable contract
b. void-ab-initio
c. personam
d. void agreement
Ans: B

8. Communication of a proposal is complete when it comes to the knowledge of the person to whom it s made.
a. True
b. Partly True
c. False
d. None of these
Ans: A
9. Incase of breach of contract of sale of some rarea article or thing for which there is no substitue available in the market the court may grant-
a.Quantum Meruit
b.Rescission
c.Specific Performance
d. Injunction
Ans: C
10. _______ is one the object of which is unlawful.
a. Void contract
b. Wager
c. An illegal agreement
d. Voidable contract
Ans: C
11. A proposal, when accepted becomes a ________.
a. promise
b. contract
c. offer
d. consensus
Ans: A
12. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
13. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
a. wagering contract
b. bilateral contract
c. illegal contract
d. unenforceable contract
Ans: B
14. Promises which form the consideration or part of the consideration for each other is
called as __________.
a. reciprocal promise
b. reciprocal offer
c. reciprocal performance
d. consideration
Ans:A
15. If any parties to the contract refuses or fails to perform his part of the contract or by
his act makes it impossible to perform his obligation under the contract, it is called
as _________.
a. breach of contract
b. void contract
c. tender
d. novation
Ans:A
16. A Quasi- contract under Indian Contract Act
a. Is an agreement
b. Is a contract
c. Has on a legal obligation
d. None of these
Ans: C

17. A contingent contract dependent on the non happening of specified uncertain event within fixed time can be enforced if the event __
a. Does not happen within a fixed time
b. Becomes impossible before the expiry of the fixed time
c. Happens within a fixed time
d. Both (a) & (b)
Ans: D
18. An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Ans:A
19. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B
20. Substitution of a new contract for the original contract is called as ______.
a. novation
b. rescission
c. alteration
d. remission
Ans:A
21. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C

22. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B
 23. The court order to restrain a person not to do a particular activity is called as
________.
a. quantum meruit
b. specific performance
c. injuction
d. novation
Ans:C
24. Coercion involves the usage of _________.
a. fraud
b. misrepresentation
c. undue influence
d. all the above
Ans:D
25. A contract which arises on the basis of coercion is called as _________.
a. void contract
b. voidable contract
c. illegal contract
a. lawful contract
Ans:A

26. A contingent contract is ____________ contract.

a. Void
b. Voidable
c. Valid
d. Illegal
Ans:C
27. Damages which may reasonably be supposed to have been in the contemplation of
both parties as he probable result of the breach of a contract is known as ________.
a. ordinary damages
b. special damages
c. vindictive damages
d. nominal damages
Ans:B
28. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
29.Vindictive Damages have been awarded-
a. for a breach of promise to marry
b. for a wrongful dishonour of a cheque by banker processing adequate funds of the customer
c. Either (1) OR (2)
d. Both (1) and (2)
 30. An Executary Consideration is-
a. Consideration promised by an executive of a company
b. consideration which consists simply of a mutual exchange of promise each being the consideration for the other.
c. consideration which should be executed on a future date
d. consideration which should be executed before the court
Ans: C
31. When a person signifies to another his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such
act or abstinence-
he is said to-
a. enter into a contract
b. make a proposal
c.accept an offer
d. create legal obligation
Ans: B
32. An agreeement to agree in future is
a. valid
b. voidable
c. invalid.
d. illegal
Ans: C
33. An agreement entered into with free consent and lawful but inadequate consideration is--
a. valid
b. voidable
c. invalid.
d. illegal
Ans: A
34. A minor's estate is liable for the ______ supplied to him
a. Luxuries
b. Necessities
c. Necessaries
d. All of these
Ans: C
35.The aggrieved party in breach of contract has not suffered any loss by reason of the
breach of contract, the damages recoverable by him is ________.
a. payment of interest
b. ordinary damages
c. special damages
d. nominal damages
Ans:D
36. If time is the essence of a contract and the promisor fails to perform the contract by the specified time, the contract:
a. remains valid
b. becomes void
c. becomes unorceable
d. becomes voidable at the instance of the promise
Ans: D
37. __________ damages are measured on the basis of extent of shock to the sentiments of the promisee
a. Vindictive
b. Nominal
c. Loss of reputation
d. Discomfort
Ans: A

38. There are _________ ways for actual breach of contract.

a. 1
b. 2
c. 3
d. 4
Answer:B
39. The technical term “Quantum Meruit” denotes ____________.
a. performance of a contract
b. quantity involved in contract
c. suit for specific performance
d. as much as earned
Answer:D
40. Law of quasi-contract is also known as ________.
a. Law of returns
b. Law of restitution
c. Law of repudiation
d. Law of contract
Ans: B
41. The contract of General Insurance is--
a. Contingent
b. Voidable
c. Valid
d. None of these
Ans: A
42. ___________ means intentional relinquishment of a right under the contract
a. waiver
b. wager
c. alteration
d. rescission
Ans:A
43. Termination of contractual relations between the parties to a contract is called as
________ .
a. performance of contract
b. discharge of contract
c. winding up of contract
d. none of the above
Ans:B
44. ____________ means passing over rights and liabilities from one person to another
person.
a. Devolution
b. Endorsement
c. Passing the buck
d. Escapism
Ans:A
 45.An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Answer:A
46. Responsibility of finder of goods under contract is __________.
a. indemnifier
b. bailee
c. owner
d. despatcher
Ans:B
47. A person who finds goods belonging to another and takes them into his custody, is
subject to the same responsibility as a ________________.
a. bailee.
b. true owner .
c. thief.
d. agent.
Ans:A
48. A finder of lost goods is a _____________.
a. bailer.
b. bailee.
c. true owner.
d. thief.
Ans:B
49. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A
50. The position of finder of lost goods is that of a ___________.
a.Bailer .
b.Bailee.
c.Surety.
d.Principal debtor.
Ans: B
51. A gratuitous bailee is liable for defects in the goods bailed __________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases.
d. in particular case.
Ans:B
52.A gratuitous bailment is one which is _____________.
a. supported by consideration
b. not Supported by consideration
c. not enforced by law
d. void
Ans:B
53. According to Sale of Goods Act, 1930, “Seller” means a person
a. Who only agrees to sell the goods
b. Who only sells the goods
c. Who sells or agrees to sell the goods
d. None of these
Ans: C
54. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A
55. In sale, if the goods are destroyed, the loss falls on _____________.
a. the buyer.
b. the seller.
c. partly on the buyer and partly on the seller.
d. third party.
Ans:A
56. If sale is by sample as well as by description, the implied condition is that the goods
shall correspond with ____________.
a. sample.
b. description.
c. both sample and description.
d. either sample or description.
Ans:C
57. In a sale, there is an implied condition on the part of seller that he __________.
a. has right to sell the goods.
b. is in position of the goods.
c. will have the right sell.
d. will not have the right to resell.
Ans:A
58. A condition is a stipulation which is____________.
a. essential to the main purpose of contract of sale.
b. not essential to the main purpose of the contract of sale.
c. collateral to the main purpose of contract of sale.
d. additional security.
Ans:A
59. ' Contract of Sale' under Sale of Goods Act, 1930, comprises of contracts which are,
a. Executory
b. Concluded
c. Both executory and executed
d None of these
Ans: C
60. In a contract of sale of goods the implied condition of wholesomeness applies to---
a. Medicines
b. Eatables
c. Cloth
d. Computers
Ans: B

61. The consideration in a contract of Sale is called--

a. Price
b. Exchange Money
c. Barter Money
d. Rewards
Ans:A
62. When a breach of condition is treated as a breach of warranty, the buyer cac--
a. Repudiate the contract
b. Reject the goods
c. Claim damages
d. None of these
Ams: C
63. The main objective of a contract of sale is ______________.
a. transfer of possessing of goods.
b.transfer of property in goods from seller to buyer.
c. delivery of goods.
d. payment of price.
Ans:B
64. When there is a contract for the sale of unascertained goods, the property in
goods___________.
a. passes when the buyer pays the price.
b. does not pass until the goods are ascertained.
c. when the contract is entered into.
d. when the buyer accepts the goods.
Ans:B
65. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
a. accept the whole.
b. reject the whole.
c. accept the goods ordered for and can return the excess quantity.
d. either a or c
Ans:D

66. The lien of an unpaid seller depends on _____________.

a. possession.
b. title.
c. ownership.
d. possession and ownership.
Ans:A
67. An unpaid seller can excises the right of stoppage in transit when the carrier holds the
goods ____________.
a. as sellers agent.
b. as buyer s agent.
c. as agent of both of them.
d. in his own name.
Ans:D
 68. The sale of goods act, 1930 deals with _________.
a. movable goods only.
b. immovable goods only.
c. both movable and immovable goods.
d. all goods except ornaments.
Ans:A
69. The term, ‘goods’ for the purpose of sale of goods act does not include _________.
a. money.
b. actionable claims.
c. immovable property.
d. all the above.
Ans:B
70.A contract for the sale of ‘furniture goods’ is_____________.
a. sale.
b. agreement to sell.
c. void.
d. voidable.
Ans:B
71. ___________ gives the buyer only a right to claim damages.
a. Condition.
b. Guarantee.
c. Warranty.
d. Indemnity.
Ans:C
 72. Which of the following is not an implied condition in a contract of sale _________.
a. condition as to title.
b. condition as to description.
c. condition as to freedom from the encumbrance.
d. condition as to a sample.
Ans:C
73. A contract of sale may be __________.
a. absolute only.
b. condition only.
c. absolute and conditional.
d. indemnity.
Ans:C
74. S and P gets into a shop. S says to the shopkeeper C “let P have the goods, and if he
does not pay you, I will”. “This is a __________.
a.contract of guarantee.
b.contract of indemnity.
c.wagering contract.
d.quasi-contract.
Ans:A
75. A bailment is usually created by agreement between ______________.
a. the principal & the agent.
b. the contracted parties.
c. the bailer & the bailee.
d. the guaranteed & parties.
Ans: C.
76. The gratuitous bailer is liable to bailee for the defects in the goods bailed
___________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases of loss.
d. in certain case of loss.
Ans:B
77.The term 'property' as used in the Sale of Goods Act, 1930 means_____________
a. possession.
b. ownership.
c. both ownership and possession.
d. the subject matter of contract of sale.
Ans:B
78.The term “contract to sale” is a generic term which includes both __________ .
a. sale & an agreement to sell.
b. contract & agreement.
c. possession & Ownership of goods.
d. transfer to ownership & possession.
Ans: A

79. _________ form the subject of a contract of sale.

a. Assets.
b. Consideration
c. Goods.
d. Agreement to sell.
Ans: C
80. There is a constructive delivery of goods_____________.
a. When the seller hands over to the buyer the key of the warehouse where the goods are
lying.
b. When a third person in possession of the goods acknowledged to the buyer that he
holds them on his behalf.
c. When the seller physically delivers the goods to the buyers.
d. When the seller asks the buyer to take delivery of the goods.
Ans:B
81.Where there is no specific agreement as to place, the goods sold are to be delivered
at the place______________.
a. at which they are at the time of sale.
b. of the buyer.
c. desired by the buyer.
d. to be determined by the seller.
Ans:A
82. An implied warranty or condition as to quality or fitness for a particular purpose may
be annexed by the usage of ________.
a. trade.
b. goods.
c. commerce.
d. agreement to sell.
Ans: A

83. __________ is an illicit act dissuading the intending purchase r from bidding.
a. Withholding the goods.
b. Damping.
c. Knockout.
d. Repudiation.
Ans: B

84. Where there is an unconditional contract for the sale of specific goods in a
deliverable state, the property in the goods passes to the buyer when ______________.
a. the goods are delivered to the buyer.
b. the price is paid by the buyer.
c. the contract is made.
d. the buyer accepts the good.
Ans:C
85. ___________ is a contract in which the terms are started in words (Written or
Spoken) by the parties.
a. Express contract.
b. Implied contract.
c. Executed contract.
d. Executory contract.
Ans: A
86. The doctrine of caveat emptor applies______________
a.in case of implied conditions and warranties.
b.when the buyer does not intimate the purpose to the seller and depends upon his own
skill and judgment.
c.when goods are sold by sample.
d.when goods are sold by description.
Ans:A
87. “A” who purchases certain goods from B by a misrepresentation and pledges them
with “C”. The pledge is _____________.
a. valid.
b. void.
c. voidable.
d. invalid.
Ans:B
88. In a hire – purchase agreement, the hirer ____________.
a. has an option to buy the goods.
b. must but the goods.
c. must return the goods.
d. is not given the possession of the goods.
Ans:A
89. ____________ means competency of the parties to enter into a valid contract.
a. Solvency.
b. Capacity.
c. Consequences.
d. Position.
Ans: B
90. The measure of damages in case of breach of a contract is the difference between the
___________.
a. contract price and the market price at the date of breach.
b. contract price and the maximum market price during the terms of contract.
c. contract price and the price at which the plaintiff might have sold the goods.
d. contract price and the price fixed by the court.
Ans:A

91. Technical term of contract without consideration is called as ________ .

a. nadum pactum.
b. void – ad-initio.
c. consensus –ad-idem
d. caveat emptor.
Ans: A
92. Mr. A, a tradesman, leaves goods at Mr. B’s house by mistake. Mr. B treats the goods
as his own. He is bound to pay for Mr.A. This is an example for obligation to pay for
________.
a. non-gratuitous act
b. gratuitous act
c. coercion
d. quantum meruit
Ans:A
93. Where the buyer wrongfully refuses to aceept the goods, the seller may recover the damages
a. for the reasonable charges for the care and the custody of goods
b. for the loss caused by the non accepatnce of goods
c. either (a) OR (b)
d. both (a) AND (b)
Ans: D
94. Under the Sale of Goods Act 1930, the existing goods are classified as
a. Specified Goods
b. Ascertained Goods
c. Unascertained Goods
d. All of the above
Ans: D
95. Following is not a document of title
a. railway receipt
b. bill of lading
c. dock of warrant
d. None of these
Ans: D
 96. When the terms of the contract of sale of goods are such that by reserving the right of disposal, the seller commits a breach of contract, and the
goods appropriated to the contract does not cause the property in goods to pass to the buyer. It is--
a. Partly True
b. True
c. False
d. None of these
Ans: B
97. When the seller exercises right of lien or right of stoppage of goods in transit and gives notice to the buyer for payment and the buyer does not
pay or tender within reasonable time , an unpaid seller can--
a. re-sale the goods
b. cannot re-sale the goods
c. ask again to the buyer
d. take possesion and mark the good as bad
Ans: A

98. Ignorance of law is _____________.

a. an excuse
b. not an excuse
c. punishment
d. offence
Ans:B
99. ‘A’ permits a coolie to put his luggage to a carriage. The contract comes into
existence as soon as the coolie puts the luggage. So ‘A’ has only to fulfill his part.
 This is an example for __________.
a. unilateral contract
b. bilateral contract
c. implied contract
d. executed contract
Ans:A
100. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C

SI Ste A B C D An Unit
m s. No.
1 Ignorance of law is an excuse. not an excuse punishment. offence. B 1
2 Agreement means . offer + offer + contract contract + Enforceable by A 1
acceptance acceptance law
3 Contract means agreement + . promise. consensus. enforceability by personam C 1
law
The two contracting parties must agree as
4 personam. consensus-ad-idem reciprocal promise accepted proposal B 1
regards the subject-matter of the contract at the
same time & in the same sense is called as .
5 There is essential element of contract 3 5 9 10 D 1
6 Technical term of void contract is . voidable void-ab-initio personam void agreement B 1
contract
7 Third party does not acquire any rights in case of void agreement voidable contract executed contract executory A 1
. contract
8 is one the object of which is unlawful Void contract Wager An illegal Voidable contract C 1
agreement
9 A proposal, when accepted becomes a . promise. contract. offer. consensus. A 1
10 The law relating to contracts is contained in the 1870 1871 1872 1873 C 1
Indian contract act,
.
The term is defined as a legal tie which imposes
11 agreement. champerty. obligation. promise. C 1
upon a definite person or persons the necessity of
doing or abstaining from doing a definite act or
acts.
12 According to validity, contract can be classified 4 5 6 3 D 1
into types.
13 According to formation, contract can be classified 1 2 3 4 C 1
into types.
14 According to performance, contract can be 1 2 3 4 B 1
classified into types.
15 According to Execution, Contract can be classified 1 2 3 4 B 1
into types
16 If the terms of a contract are expressly agreed upon express executory contract implied contract express offer. A 1
between the parties at the contract
time of formation of the
A permits a coolie to put his luggage to a carriage.
17 The contract comes into existence as soon as the unilateral bilateral contract. implied contract. executed contract A 1
coolie puts the luggage. So A has only to fulfill his contract.
part.
This is an example for .
18 The obligation of both the parties to the contract are wagering bilateral contract illegal contract unenforceable B 1
pending at the time of contract contract.
formation of the contract is called as .
19 A contracts to pay Rs. 10,000 if Bs house is burnt. wagering contingency contract. executory contract quasi contract. B 1
This is a . contract
20 An advantage or benefit, moving from one party to lawful lawful object free consent. illegal A 1
the other is called as consideration consideration.
 .

21 A agrees with B to put life into Bs dead wife, the impossible to low capacity of the illegal. fraud A 1
agreement is void as it is perform parties
.
22 Attempted performance can be otherwise called as tender. B. estimation. C. quotation. D. discharge. A 1
.
23 Promises which form the consideration or part of reciprocal B. reciprocal C. reciprocal D. A 1
the consideration for each other, promise. offer. performance. consideration
are called
24 Termination contractual relations between the performance of discharge of contract winding up of none of the B 1
parties to a contract is called as contract. contract above.
.
25 Discharge of performance can be broadly classified A. 4. B. 5. C. 6. D. 3. C 1
into
categori
es
26 Substitution of a new contract for the original novation. rescission. lteration. remission. A 1
contract is called as .
27 means intentional relinquishment of a right waiver. B. wager. C. alteration. D. rescission. A 1
under the contract.
28 If any parties to the contract refuses or fails to breach of B. void contract. C. tender. D. novation. A 1
perform his part of the contract or contract.
by his act makes it
29 occurs when the party declares his anticipatory B. actual breach of C. discharge of D. remission. A 1
intention of not performing the
contract in prior. breach of contract. contract.
contract.
30 There are ways for actual breach of contract 1 2 3 4 A 1
When a contract has been broken, the injured
31 party can recover from the other party such ordinary special damages. vindictive nominal damages A 1
damages as naturally & directly arose in the damages. damages.
course of things from the
breach is called as
32 means a right not to perform obligation Rescission. Novation. Quantum merit. Punishment. A 1
Damages which may reasonably be supposed to
33 have been in the contemplation of both parties as ordinary special damages. vindictive nominal B 1
he probable result of the breach of a contract is damages. damages. damages.
known as
34 The court order to restrain a person not to do a A. quantum B. specific C. injuction. D. novation. C 1
particular activity is called as meruit. performance.
35 A person should not be allowed to enrich himself A. contingent B. wagering C. quasi D. void C 1
unjustly at the expense of contract. contract. contract. contract.
another is the principle of
36 The technical term Quantum Meruit denotes A. B. quantity involved C. suit for D. as much as D 1
performance in contract. specific earned.
of a performance.
contract.
37 Law of quasi-contract is also known as A. law of B. law of C. law of D. law of B 1
returns. restitution. repudiation. contract.
38 Coercion involved the usage of A. fraud. B. C. undue D. all the D 1
misrepresentation influence. above.
.
39 Responsibility of finder of goods under contract is A. B. bailee. C. owner. D. dispatcher. B 1
indemnifier.
40 A contract which rises on the basis of coercion is A. void B. voidable C. illegal D. lawful A 1
 called as contract. contract. contract. contract.
41 Contingent contract is a . A. void. B. voidable. C. valid. D. illegal. C 1
42 A quasi- contract . A. is a B. is an C. has only a legal D. contingent C 1
contract. agreement. obligation. contract.
43 When an agreement is discovered to be void, any A. is bound to B. is not bound to C. may retain D. no need to A 1
person who have received any restore it. return it. it. return.
advantage under such agreement .
44 A contract of indemnity is . A. contingent B. wagering C. quasi D. void A 1
contract. contract. contract. agreement
A. when he B. when he acts for C. when he acts for D. when he act
45 An agent is personally liable . A 1
acts for an a named a principal not as a sub-
undisclosed principal. in existence. agent.
principal.
46 A who purchases certain goods from B by A. valid. B. void. C. voidable. D. invalid. A 1
representation pledges them with C.
the pledge is .
47 The right of subrogation in a contract of guarantee A. B. principle C. surety . D. C 1
is available to the creditors. debtors. indemnifier.
.
48 The omission of the creditor to sue with in the A. discharges B. dose not discharge C. makes the D. makes the B 1
period of limitation . the surety. the surety. contract of contract illegal.
guarantee
void.
A. a right of C. a right of both D. no lien at all
49 A bailee has . B. a right of A 1
particular lien particular and over the
general lien.
over the good general lien. goods bailed
bailed.
50 The position of finder of lost goods is that of a A. bailor . B. bailee. C. surety. D. principal B 1
. debtor.
51 A gratuitous bailee is liable for defects in the goods A. even if he is B. only if he is C. in all D. in particular B 1
bailed . not aware aware of them. cases. case.
of them.
52 A gratuitous bailment is one which is . A. supported B. not Supported by C. not enforced D. void. B 1
by consideration. by law.
consideratio
n.
A. at the time
53 For a valid ratification the principal must have of the contract B. at the time of C. at the time of D. at any A 1
contractual capacity . and at the time ratification. contract. time.
of
ratification .
A. not entitled B. entitled C. entitled to
54 If there no agreement, an agent is . D. gets B 1
to any reasonable remuneration
commission
remuneratio remuneration. which he thinks is only.
n. reasonable.
55 For his commission of remuneration an agent has A. a general B. a particular C. no lien at D. neither B 2
. lien . lien. all. general lien nor
particular
lien.
56 Concept of caveat emptor denotes . A. buyer B. customer C. customer D. customer C 2
behavior. loyalty. awareness on attitude.
purchase.
A. is B. is yet to be C. may be D. is transferred
57 In a sale, the property in goods . A 2
transferre transferred to transferred when the buyer
d to the the buyer. at future pays the price.
buyer. time.
58 In sale, If the goods are destroyed, the loss falls on A. the buyer B. the seller . C. partly on the D. third A 2
. . buyer and party.
partly on the
seller.
59 Specific goods are those which are identified A. at the time B. by an expert. C. by the D. by the A 2
. of contract seller. buyer.
of sale.
If a price is not determined by the parties in a A. the price C. the price
60 B. a reasonable D. cost. B 2
contract of sale the buyer is bound to pay . demanded demanded
price.
by the by the
seller. seller.
A. in case of B. when the buyer
does not intimate the C. when goods D. when goods
61 The doctrine of caveat emptor applies . implied B 2
purpose of seller and are sold by are sold by
conditions
depends upon his on
 and skill and sample. description.
warranties. judgment.

62 If sale is by sample as well as by description, the A. sample. B. description. C. both sample D. either C 2
implied condition is that the and sample or
goods shall correspond with description. description.
63 In a sale , there is an implied condition on the part A. has right to B. is in position of C. will have the D. will assure A 2
of seller that he . sell the the goods. right sell. the goods.
goods.
A. essential to B. not essential to the C. collateral to
64 A condition is a stipulation which is . the main D. additional A 2
main purpose of the main purpose
purpose of security
the contract of of contract of
contract of sale. sale.
sale.
65 In the case of breach of a warranty, the buyer can A. repudiate the B. claim damage C. refuses to pay D. refuses to take B 2
. contract. only. the price. the delivery
of the goods.
66 The main objective of a contract of sale is . A. transfer of B. transfer of C. delivery of D. payment of B 2
possessing property in goods goods. price.
of goods. from seller to
buyer.
67 Risk follows ownership . A. only when B. only when price C. whether D. even when the C 2
goods have has been paid. delivery has been price has
been made or not. not been paid
delivered.
A. the goods B. the goods have C. there is a D. there is a
68 In an agreement to sell, the seller can sue for price C 2
have been not been delivered specific general
if .
delivered to to the buyer. agreement. agreement.
the buyer.
Where there is an unconditional contract for the A. the goods D. the buyer
69 B. the price is paid C. the contract is C 2
sale of specific goods in a deliverable state, the are delivered accepts the
by the buyer. made.
property in the goods passes to the buyer when to the buyer. goods.

.
70 Where there is a contract for the sale of A. passes when es not pass until the C. when the D. when the B 2
unascertained goods, the property in the buyer goods are ascert contract is buyer accepts
goods . pays the entered into. the goods
price.
71 When there is a specific agreement as to place, the A. at which B. of the buyer. C. decide by the D. to be A 2
goods sold are to be delivered they are at seller. determined by the
at the place . time of seller
sale.
 Unless otherwise agreed, were goods are send by A. must inform D. no need to
72 the buyer in B. may insure the C. must insure A 2
the seller to the buyer by a route involving a sea insure the
time to get the goods. the goods.
transit of the seller . goods
goods
insured.
73 A seller delivers goods in excess of the quantity A. accept the B. reject the C. accept the D. accept the part A 2
ordered for. The buyer whole. whole. goods ordered of goods.
may . for and
returns.
74 In contract, the seller may sue for the . A. price of B. price only. C. damages D. both for C 2
damages. only. price and
damages.
75 The lien of an unpaid seller depends on . A. B. title. C. ownership. D. possession and A 2
possession. ownership.
A. where the
goods have B. where the buyer D. for the price of
76 An unpaid seller can excises his rights of lien C. for the price of C 2
. been sold on has not the goods. the goods and
credit and become expenses.
terms of credit insolvent.
have not
expired.
77 The right of lien excised by an unpaid seller is to A. retain B. regain C. recovery price D. damages. A 2
. possession. possession. and other
charges.
78 An unpaid seller can excises the right of stoppage in A. as sellers B. as buyer s C. as agent of D. in his own D 2
transit when the carrier holds agent agent. both of them. name.
the goods
79 If the goods are rejected by the buyer and the carrier A. is deemed B. is not deemed to C. D. not yet B 2
or the bailee continuous to to be an be an end. commences. commences.
be in possession of them the transit . end.
An unpaid seller has not given notice of resale to A. the unpaid B. the unpaid seller C. the buyer can D. the buyer
80 B 2
the buyer. On the resale there is a loss . seller can cannot recover it recover it from must compensate
recover it from from the buyer. unpaid seller. the unpaid seller.
the buyer.
81 The sale of goods act, 1930 deals with . A. movable B. immovable C. both D. all goods A 2
goods only. goods only. movable and except
immovable ornaments.
goods.
82 The term, goods for the purpose of sale of goods A. money. B. actionable C. immovable D. all the B 2
 act does not include . claims. property. above
83 A contract for the sale of furniture goods is . A. sale . B. agreement to C. void. D. voidable. B 2
sell.
84 In a hire purchase agreement, the hirer . as an option to B. must but the C. must return D. is not given the A 2
buy the go goods. the goods. possession
of the goods
85 Gives the buyer only a right to claim damages is A. B. guarantee. C. warranty. D. indemnity C 2
known as . condition.
Which of the following is not an implied condition C. condition as to
86 in a contract of sale A. condition as B. condition as to D. condition as to C 2
freedom from
to title. description. a sample.
. the
encumbrance.
87 The term goods exclude . A. stock and B. growing C. actionable D. services. C 2
shares. crops. claim.
88 A contract of sale may be . A. absolute B. condition C. absolute and D. indemnity. C 2
only. only. conditional.
89 The sale of goods act, 1930 dose not cover . A. existing B. immovable C. future D. services B 2
good. goods. goods.
90 S and P gets into a shop. S says to the shopkeeper, A. contract of B. contract of C. wagering D. quasi- A 2
C let P have the goods, and if guarantee. indemnity. contract. contract.
he does not pay you,
A. a right of a C. a right of both D. no lien at all
91 A bailer is a . B. a right of A 2
particular lien particular and over the
generation
over the goods general lien goods bailed
bailed
92 A, who purchases certain goods from B by a A. valid. B. void. C. voidable. D. invalid. B 2
misrepresentation pledges them with
C. the pledge is .
93 In a sale, if the goods are destroyed, the loss falls A. the B. the seller. C. partly on the D. the seller if A 2
on . buyer. buyer and price has not
partly on the been paid.
seller.
94 The term property as used in the Sale of Goods Act, A. B. ownership. C. ownership as D. the subject B 2
1930 means . possession. well as matter of
possession. contract of
sale.
 A. in case of B. when the buyer
does not intimate the C. when goods D. when goods
95 The doctrine of caveat emptor applies . implied A 2
purpose to the seller are sold by are sold by
conditions
and depends upon his sample. description.
and own skill and
warranties. judgment.
If a sale is by sample as well as by description, C. both sample D. either
96 A. sample. B. description. C 2
the implied condition is that the goods shall and sample or
correspond with . description. description.
97 In a sale, there is an implied condition on the part of A. has a right B. is in possession of C. will have the D. will acquire A 2
the seller that to sell the the goods. right to sell. the goods.
he . goods.
A. essential to B. not essential to the C. collateral to
98 A condition is a stipulation which is . the main D. not A 2
main purpose of the main purpose
purpose of mandatory.
contract of sale. of contract of
contract of sale.
sale.
99 In case of breach of a warranty, the buyer can A. repudiate the B. claim damages C. return the D. refuse to pay B 2
. contract. only. goods. the price.
100 The main objective of a contract of sale is . A. transfer of B. transfer of C. delivery of D. payment of B 2
possession property in goods. goods. price.
of goods.
101 Risk follows ownership . A. only when B. only when price C. whether D. even when C 2
goods have has been paid. delivery has been price has not
been made or not. been paid.
delivered.
A. the goods B. the goods have D. it is not a
102 In an agreement to sell, the seller gets for price if C. there is specific C 2
have been not been delivered agreement. specific
.
delivered to to the buyer. agreement.
the buyer.
103 In a contract of sale, unless goods are ascertained, A. a sale. B. an agreement to C. a void D. an B 2
there is . sell. agreement. unenforceable
agreement.
Where there is an unconditional contract for the A. the goods D. the buyer
104 B. the price is paid C. the contract is C 2
sale of specific goods in a deliverable state, the are delivered accepts the
by the buyer. made.
property in the goods passes to the buyer when to the buyer. good.
 .

If the contract is silent as to the party A. the C. the party who

105 B. goods seller is to be under the contract D. any party may C 2
who is to appropriate the goods . buyer is
appropriate. is first to act is to appropriate
to
appropriate.
appropri
ate.
106 In a C.I.F., contract the property in goods passes A. goods are B. goods are received C. contract is D. price is A 2
from the seller to the buyer when shipped. by the buyer. entered into. paid.
the .
A. when the B. where a third
person in C. when the seller D. when the
seller hands
107 There is a constructive delivery of goods . possession of the physically seller asks the B 2
over to the
goods delivers the buyer to take
buyer the key of
the warehouse acknowledged to the goods to the delivery of the
buyers. goods.
where buyer that he holds
the goods are them on his
lying. behalf.
108 In case of breach of a warranty, the buyer can A. repudiate the B. claim damages C. return the D. refuse to pay B 2
. contract. only. goods. the price.
109 The main objective of a contract of sale is . ransfer of B. transfer of C. delivery of D. payment of B 2
possession of go property in goods. goods. price.
110 In a contract of sale, unless goods are ascertained, A. a sale. B. an agreement to C. a void D. an B 2
there is . sell. agreement. unenforceable
agreement.
Where there is an unconditional contract for the A. the goods D. the buyer
111 B. the price is paid C. the contract is C 2
sale of specific goods in a deliverable state, the are delivered accepts the
by the buyer. made.
property in the goods passes to the buyer when to the buyer. good.

.
A seller delivers goods in excess of the C. accept the
112 A. accept the B. rejects the D. accept the part B 2
quantity ordered for. The buyer may . goods ordered for
whole. whole. of goods.
and return the
excess.
 Where the neglect or refusal of the buyer to take D. both for
113 A. price or B. price only. C. damages A 2
delivery of goods amounts to a repudiation of the price and
damages. only.
contract, the seller may sue for the . damages.
 D. whether the
114 The lien of an unpaid seller depends on . A. B. title. C. ownership. A 2
buyer has paid
possession.
the price or
not.
Unless otherwise agreed, where goods are A. he is not B. it is sufficient if he C. he is bound to D. he may keep
115 intimates to the seller B 2
delivered to the buyer and he rejects them . bound to return deliver them them with
them to the that he has rejected to the seller. him.
seller. the
goods.
116 Where there is no specific agreement as to place, A. at which B. of the buyer. C. desired by the D. to be A 2
the goods sold are to be they are at buyer. determined by
delivered at the place . the time of the
sale. seller.
117 is an agreement between two or more parties Contract Agreement Offer Acceptance A 1
law enforceable in a court of
118 A contract based on the equitable principal that a Executed Bilateral contract Quasi contract Simple contract C 1
person shall not be allowed to contract
enrich himself at the expense of another
119 A contract which cannot be enforceble in a court Voidable Void contract Valid contract Vaild for Law B 1
law contract
120 All are agreement, but all agreements are not Contract Agreement Offer Acceptance A 1
necessarily contracts.
121 A person who is competent to enter into a contract A minor A person of sound A lunatic A unsoundmind B 1
must be mind woman
122 must be according to the mode described. Contract Agreement Offer Acceptance D 1
123 When one person signifies to another his Proposal Offer Agreement Contract A 1
willingness to do or to abstain from
doing anything, it is known as
124 A contract is based on an Proposal Offer Agreement Contract C 1
125 is a contract which is inferred from the acts or Express Quasi Void Implied D 1
conduct of the parties
126 is a contract which is entered into, between Express Quasi E-commerece Implied C 1
parties via internet.
127 An contract is a contract in which both the parties Express Exectuted Executable Implied B 1
have performed their
respective obligations.
128 All contracts which are not made under seal are Simple Legal Express Implied A 1
contracts.
129 In commercial and business agreements, the Simple Legal relations No relations Avoid relations B 1
presunption is that the parties relations
intended to creat
130 An offer may be communicated Orally By conduct only By written mode By orally, D 1
conduct and
written
131 Acceptance may be communicated by Any Person Authorised person His agent His Principal B 1
132 An offer may be made to a Specific person Any person Public person only Specific and B 1
only Public person
only
133 Newspaper advertisements are not Offer Acceptance Communication Revocation A 1
134 An acceptance to an offer in ignorance of the offer Offer Acceptance Communication Revocation B 1
is no
135 When two parties make identical offers to each Simple offer Specific offer Cross offers acceptance C 1
other in ignorance of each other's
offer, the offer are known as
136 An acceptance with a variation is nothing but a Public offer Specific offer Cross offers Counter offer D 1
137 An offer is said to be general when it is made To a definite To the public at large To a group of To a team of B 1
person persons persons
An acceptance may be revoked at any time before
138 Advertisement Agreement Lapse Communication D 1
the of the
acceptance is complete as against the acceptor, but
not afterwards.
139 An offer may come to an end by Lapse Revocation Lapse/ Revocation non performance C 1
140 An offer can be communicated After Contract Before it can be After acceptance After Agreement B 1
accepted
141 means relationship subsisting the parties who Proposal Offer Privity of Acceptance 1
have entered into contractual C
obligations. contract
142 Consideration may be Latest Current Recent Present and D 1
future
143 The consideration may be Always Always Positive Never C 1
Positive Negative and Positive and
negative negative
Defeat the
144 A consideration should not Be opposed to Result in At the C 1
provisi
public policy some desire of the
ons of interest promiser
any
law
145 A valuable consideration may not consist Some profit Some Nither profit Some profit D 1
either in to one party determinent to or and
the other party determinent determinet
to to one party
one arty
146 An agreement made without consideration is Valid Void Voidable Executable B 1
147 No consideration is necessary to create an Agreement Agency Implied Executable B 1
contract contract
148 A consideration must be real and not Real TRUE Illusory Valid C 1
149 of the consideration is for the Adequa Non Non Non 1
parties to consider at the time A
of meeting the cy Sufficien compete capabili
agreement.
cy ncy ty
150 A contract without consideration is Valid Void Voidable Executable B 1
151 Consideration must move at the desire of the desire of the desire of desire of the A 1
promisor Acceptor the offerer
promesee
152 Minors agreements are Valid Void ab initio Voidable General B 1
153 A minor is a person who has not completed 16 years 18 years 21 years 25 years B 1
154 Persons disqualified by law do not include Convicts Insolvents Agents Principal C 1
155 For necessaries supplied to a minor A minor is Thre guardian's The A minor's D 1
liable property is guardian property is
liable is liable liable
156 A persons who has lost his mental ability Lunatic Alien Drunkan Idiot D 1
 completelity is
157 A person whose mental powers are derangd Lunatic Alien Drunkan Idiot A 1
is
158 A minor can be a or Promisee , Principal, Acceptor, Principal, A 1
Beneficiary Beneficiary Promisor Acceptor
159 A minor cannot be adjudge as Promisor Insolvent Offerer Acceptor B 1
160 A is a person who suffers from Lunatic Alien Drunkan Idiot A 1
intermittent intervals of sanity and
insanity.
161 Capacity of contract means Lunatic Idiot person Compete Drunkan C 1
person nt person person
162 A fraud means A A promice Knowing A C 1
representati made for ful false representati
on of fact performance represe on by
ntation
mistake
163 When the consent of a person is obtained by Valid Void Voidable Executable B 1
fraud, the contract is
164 When the consent to an agreement is Voidable Valid Void Executable A 1
obtained by coercion the agreement is
165 A false statement of facts made without any Fraud Coercion Misrepre Undue C 1
intention to device the other party sentation influence
falls under the category of
166 The effect of a bilateral mistake is that the Voidable Valid Void Executable A 1
agreement is
167 The mistake of law of land does not render Voidable Valid Void illigal B 1
the agreement
168 A unilateral mistake does render the Voidable Valid Void Executable C 1
agreements
Q1) Which of the following is an instance of constructive delivery of goods Marks : 1.0
Id: 45406

1) the transfer of bill of lading 2) attornment by a person in possession of the

goods
3) both (a) and (b) 4) only (b) and not (a).

Explanation:

Q2) Flaw in capacity to contract may arise from- Marks : 1.0

Id: 45347

1) Lack of free consent 2) Lack of consideration

3) Minority 4) Absence of legal formalities

Explanation:
Q3) Under section 5 of the Sale of Goods Act, 1930, a contract of sale of goods can be Marks : 1.0
Id: 45458

1) in writing 2) by words of mouth

3) partly in writing and partly by words of mouth 4) either (a) or (b) or (c)

Explanation:

Q4) A proposal can be accepted Marks : 1.0

Id: 45320

1) by notice of acceptance 2) by performance of condition of proposal

3) by acceptance of consideration for a 4) all the above

reciprocal promise
Explanation:
Q5) a Contingent Contract to do or not to do anything on the happening of an uncertain Marks : 1.0
future Explanation:
_x000D_ Id: 45541
event 2) is enforceable since the time of making it
1) is never enforceable
4) becomes enforceable only on the happening of
3) becomes enforceable in the immediate that event.
possibility of happening of that event

Q6) Void agreement signifies Marks : 1.0

Id: 45297

1) agreement illegal in nature 2) agreement not enforceable by law

3) agreement violating legal procedure 4) agreement against public policy

Explanation:
Q7) A contract which is valid initially however, ceases to be enforceable subsequently, Marks : 1.0
the contract Id: 45341
1) becomes voidable when enforceable 2) becomes voidable when enforceable
3) becomes void when it enforceable 4) becomes void since inception

Explanation:

Q8) The term property as used in Sale of Goods Act, 1930 means

1) Possession 2) Ownership

Marks : 1.0
3) ownership& possession both 4) subject matter of contract of sale Id: 45400
Explanation:
Q9) The Sale of Goods Act, 1930 applies to the whole of India except Marks : 1.0
Id: 45393

1) Jammu & Kashmir 2) Dadra and Nagar Haveli

3) Goa, Daman & Diu 4) all the above

Explanation:

Q10) When the consent to the contract is caused by coercion, the contract under section Marks : 1.0
19 is Id: 45327

1) valid 2) voidable

3) void 4) illegal

Explanation:
Q11) Contractual rights & duties are created by Marks : 1.0
Id: 45562

1) State 2) Statute

3) Parties 4) Custom & Usage

Explanation:
Q12) The person to whom the bill is negotiated by endorsement called …………….. Marks : 1.0
Id: 45558

1) The endorser 2) The holder

3) The payee 4) The endorsee

Explanation:
Q13) Contract without consideration made in writing & registered and made on account of
Marks : 1.0 natural love and affection is Id: 45362

1) void 2) voidable

3) valid 4) unenforceable

Explanation:

Q14) Where there is no specific agreement as to place, the goods sold are to be delivered
Marks : 1.0 at the place Id: 45454

1) at which they are at the time of sale 2) of the buyer

3) desired by the buyer 4) to be determined by the seller

Explanation:

Q15) Under the Sale of Goods act 1930 stipulation may be Marks : 1.0
Id: 45568

1) Condition 2) Warrenty

3) Option A & B 4) None of these

Explanation:
Q16) A contract not specifying the place of performance Marks : 1.0
Id: 45386

1) performed at any place to the knowledge of the 2) the promisor has to apply to the promisee for
promisee appointment of a place of performance &
perform the promise at that place

3) the promisor need not seek any instructions 4) the promisor can perform the promise at a
from the promisee as to the place of place other than the place appointed by the performance
promisee

Explanation:

Q17) Where in a contract of sale, a condition has been inserted for the benefit of both the
Marks : 1.0 parties Id: 45450

1) may be waived by either party unilaterally 2) it may be waived by mutual agreement

3) it cannot be waived 4) either (a) or (b).

Explanation:
Q18) Which of the following are 'goods' within the meaning of section 2(7) of the Sale of Marks : 1.0
Goods Act, 1930 Id: 45419

1) things attached to land which are agreed to be 2) things forming part of the land agreed to be
severed before sale severed before sale

3) both (a) and (b) 4) neither (a) nor (b)

Explanation:

Q19) The question of the insolvency of a buyer, under the Sale of Goods Act, 1930, is of Marks : 1.0
importance in connection with Id: 45424
1) the seller's lien on the goods 2) the right of stoppage in transit

3) both (a) and (b) 4) only (a) and not (b)

Explanation:

Q20) Which of the following statements is correct, in relation to the withdrawal of an

o
f
f
e
r
?
M
a
r
k
s
:
1
.
0
I
d
:
4
5
 5
3
5

1) An offer may only be withdrawn by the offeror. 2) An offer may be withdrawn by the offeror or a
reliable third party.

3) Once an offer has been made it can never be 4) An offeror has one week to withdraw his offer.
withdrawn.

Explanation:
Q21) Under section 2(2) of the Sale of Goods Act, 1930, 'delivery' means Marks : 1.0
Id: 45403
1) gratuitous transfer of possession from one 2) involuntary transfer of possession from
person to another one person to another

3) voluntary transfer of possession from one 4) ) transfer of possession irrespective of

person to another whether it is gratuitous, involuntary or
voluntary, from one person to another.
Explanation:

Q22) Considerations & objects are unlawful where it is Marks : 1.0

 Id: 45333
1) forbidden by law or defeat the provision of any 2) which is fraudulent law

3) which is immoral & against the public policy

4) all the above

Explanation:

Q23) Which one of the following terms is not implied into contracts for the sales of goods Marks : 1.0
in a private sale? Id: 45556

1) The seller has the right to sell. 2) The goods are of satisfactory quality.

3) The goods match the sample. 4) The goods match their description.
Explanation:
Q24) In a C.I.F. contract, the property in goods passes from the seller to the buyer when Marks : 1.0
Id: 45441
the
1) goods are shipped 2) goods are received by the buyer 3) contractis entered into

4) price is paid

Explanation:

Q25) Promises which form the consideration or part thereof, for each other under section
2(F) are called
1) acceptances for different proposals 2) agreements

Marks : 1.0
3) reciprocal promises 4) consideration Id: 45302
Explanation:
Q26) Which of the following terms define the legal principle "Let the buyer beware" ? Marks : 1.0
Id: 45557

1) Buyer’s liability 2) Caveat emptor

3) Indemnity 4) Bailment
Explanation:

Q27) Under section 2(11) of the Sale of Goods Act, 1930, the property in goods means Marks : 1.0
Id: 45429

1) the general property or ownership of goods 2) the specific property or ownership of goods

3) both (a) and (b) 4) either (a) or (b).

Explanation:
Q28) A guarantee may be given for an existing debt or obligation is Marks : 1.0
Id: 45505

1) prospective guarantee 2) continuing guarantee

3) specific guarantee 4) retrospective guarantee

Explanation:

Marks : 1.0
Q29) Goods' within the meaning of section 2(7) of the Sale of Goods Act, 1930 includes Id: 45417
1) actionable claim(s) 2) money

3) both (a) and (b) 4) neither (a) nor (b).

Explanation:
Q30) Section 2(7) of the Sale of Goods Act, 1930, the term 'goods' does not include Marks : 1.0
Id: 45418

1) stock and share 2) growing crops

3) grass 4) neither (a) nor (b) nor (c)

Explanation:
Q31) The surety has a right to recover from the principal debtor the amounts which he has
Marks : 1.0 rightfully paid under the contract of guarantee. This right of surety
against debtor is Id: 45502 called…
1) Right of subrogation 2) Right to be indemnified

3) Right of contribution 4) Both a & b

Explanation:

Q32) In case of joint promise, generally the performance must be by Marks : 1.0
Id: 45378
1) all the promisors jointly 2) any one of them individually

3) one not authorised to perform 4) none of the above

Explanation:
Q33) In a sale , there is an implied condition on the part of the seller that he Marks : 1.0
Id: 45408

1) has a right to sell the goods 2) is in possession of the goods 3) will have the

rights to sell 4) will acquire the goods

Explanation:

Marks : 1.0
Q34) Section 8 of the Sale of Goods Act, 1930 is not applicable to Id: 45474
1) generic goods 2) specific goods
3) unascertained goods which form a part of a 4) none of the above specific
subject-matter

Explanation:
 Q35) Under section 2(4) of the Sale of Goods Act, 1930, which of the following documents
Marks : 1.0 is not a document of title Id: 45411

1) pucca delivery order enabling a person to 2) mate's receipt obtain

delivery on payment of price
3) both (a) and (b)

4) neither (a) nor (b).

Explanation:
Q36) The definition of 'the documents of title to goods' given in section 2(4) of the Sale of Marks : 1.0
Goods Act, 1930, is Id: 45409

1) exhaustive 2) descriptive

3) exhaustive and descriptive 4) only (a) and not (b) or (c).

Explanation:

Q37) A contract based on the happening or non- happening of a future event under Marks : 1.0 contract act is called Id: 45522

1) a contingent contract 2) a wagering contract

3) a contract marked with uncertainty and hence 4) none of the above
void

Explanation:
Q38) The maxim 'Ignoranlia juris non excusa' stands for Marks : 1.0
Id: 45499
1) law will not punish ignorant people. 2) law will punish illiterate people.

3) ignorant people can excuse law. 4) ignorance of law of land is no excuse.

Explanation:

Marks : 1.0
Q39) Offer as defined under section 2(a) is Id: 45298
1) communication from one person to another 2) suggestion by one person to another
3) willingness to do or abstain from doing an act 4) none of the above
in order to obtain the assent of other thereto

Explanation:
Q40) The definition of 'goods' under section 2(7) of the Sale of Goods Act, 1930 is Marks : 1.0
Id: 45416

1) descriptive 2) exhaustive

3) exhaustive and descriptive 4) declaratory

Explanation:
Q41) A person is deemed to be in a position to dominate the will of another if Marks : 1.0
Id: 45514
1) he holds a real or apparent authority over the 2) he stands in a fudiciary relation to the other.
other.
3) all of the above.

4) none of the above.

Explanation:

Marks : 1.0
Q42) The Sale of Goods Act, 1930 is based on Id: 45395
1) theenglish Bills of Exchange Act, 1882 2) the Transfer of Property Act, 1882
3) (c) the English Sale of Goods Act, 1893 4) the Indian Contract Act, 1872.
Explanation:
Q43) An agreement not enforceable by law is said to be – Marks : 1.0
Id: 45343

1) Void 2) Voidable

3) Valid 4) Unenforceable

Explanation:

Q44) Where there is an unconditional contract for the sale of specific goods in a Marks : 1.0 deliverable state, the property in the goods
passes to buyer when Id: 45430

1) Goods are delivered to the buyer 2) price is paid by the buyer

3) contract is made 4) buyer accepts the goods

Explanation:
Q45) Where both the parties are under mistake as to matter of fact, the contract under Marks : 1.0 section 20 is Id: 45331

1) voidable 2) void

3) valid 4) illegal

Explanation:

Q46) Tender is Marks : 1.0

Id: 45310

1) an offer 2) an invitation to offer

3) a counter offer 4) a promise

Explanation:
Q47) A contingent contract Marks : 1.0
Id: 45368

1) is void 2) never becomes void

3) becomes void when the event becomes 4) is voidable impossible

Explanation:
Q48) A proposal when accepted becomes Marks : 1.0
Id: 45300

1) promise under section 2(b) 2) agreement under section 2(e)

3) contract under section 2(h) 4) none of the above

Explanation:

Q49) An agreement not to raise the plea of limitation is Marks : 1.0

Id: 45325
1) valid& binding 2) void

3) voidable 4) illegal
Explanation:
Q50) "Mercantile agent" means the person Marks : 1.0
Id: 45425
1)who sell goods, or consigns for the purpose of 2) who only sell or purchase sell, or buy goods or raise
money on security of goods
3) who only consign goods

4) who only transfer goods

Explanation:

Q51) Which of the following circumstances will not cause the agency relationship to Marks : 1.0
Id: 45503
terminate?
1) The death of the principal. 2) The death of the agent.
3) The bankruptcy of the principal. 4) The bankruptcy of the agent

Explanation:

Marks : 1.0
Q52) The lien of unpaid seller depends on Id: 45468
1) possession 2) title

3) ownership 4) whether the buyer has paid the price or not

Explanation:
Q53) Future goods' has been defined, in the Sale of Goods Act, 1930, under Marks : 1.0
Id: 45554
1) section 2(5) 2) section 2(6)

3) section 2(7) 4) section 2(8).

Explanation:
Q54) In an agreement to sell, the seller can sue for price if Marks : 1.0
Id: 45423

1) the goods have been delivered to the buyer 2) the goods have been delivered to the buyer

3) there is a specific agreement 4) None of the above

Explanation:

Marks : 1.0
Q55) Which is correct Id: 45305
1) proposal + acceptance = promise 2) promise + consideration = agreement

3) agreement + enforceability = contract 4) all the above

Explanation:
Q56) Parties are not competent to contract if any of them is Marks : 1.0
Id: 45338

1) minor 2) insane

3) declared unqualified 4) all the above

Explanation:

Q57) Under section 2(6) of the Sale of Goods Act, 1930 'future goods' means

1) goods which are not yet in existence 2) unascertained goods

Marks : 1.0
3) ascertained goods 4) specific goods Id: 45413
Explanation:
Q58) Revocation of offer by letter or telegram can be complete Marks : 1.0
Id: 45314

1) when it is despatched 2) when it is received by the offeree 3) when it reaches the

offeree 4) both (a) and (c)

Explanation:

Q59) Every contract is an agreement but every agreement is not a contract. This statement
is-
1) Wrong 2) Correct

Marks : 1.0
3) Correct subject to certain exceptions 4) Partially correct Id: 45516
Explanation:
Q60) Where under an agreement, the buyer has a right to return the goods at any time and Marks : 1.0 thereby himself from any further
obligation as regards payment is a contract of Id: 45443
1) sale 2) bailment

3) hiring 4) agency

Explanation:

Q61) What is meant by executory consideration? Marks : 1.0

Id: 45532

1) Consideration which is in the past. 2) Where there is a promise to do something in

the future.

3) Where consideration has already been 4) The exchange of consideration.

completed.

Explanation:
Q62) an agreement which is enforceable by law at the option of one or more of the parties Marks : 1.0 thereto, but not at option of the other or
others, is a – Id: 45536
1) Void agreement 2) Voidable contract

3) Unlawful contract 4) Void contract

Explanation:
Q63) When the consent to an agreement is obtained by undue influence, the agreement is Marks : 1.0
voidable _x000D_ at the option of Id: 45540

1) either of the parties to the agreement 2) a party whose consent is soobtained

3) a party who obtained the consent 4) both the parties

Explanation:

Q64) Mr. X owns a residential flat in Pune. He is entitled to quite possession and Marks : 1.0 enjoyment of his property. This is called-
Id: 45500
1) Rights in personam 2) Rights in Rem..

3) Constitutional Right 4) There is no right at all.

Explanation:

Q65) When a person signifies to another his willingness to do or to abstain from doing Marks : 1.0
anything, with a view to obtaining the assent of that other to such act or abstinence, Id: 45352
he is said to –
1) enter into a contract 2) make a proposal

3) accept an offer 4) create legal obligation

Explanation:
Q66) A proposal may consist of a promise for Marks : 1.0
Id: 45538

1) Doing an act 2) Abstaining from doing an act

3) Either (a) or (b) 4) Returning the consideration

Explanation:

Q67) A contract which becomes unenforceable subsequently is a

1) void contract 2) valid contract

Marks : 1.0
3) enforceable contract 4) void agreement Id: 45574
Explanation:
Q68) Promises which form the consideration or part of the consideration for each other Marks : 1.0
Id: 45295
are called
1) reciprocal promises 2) cross offers

3) conditional offer 4) conditional promises

Explanation:

Marks : 1.0
Q69) Which of the following is the recognized exception to the rule of privity of contract? Id: 45498
1) trust or charge. 2) marriage settlement and family arrangements.
3) acknowledgement of payment. 4) all of the above

Explanation:
Q70) A contract which ceases to be enforceable by law becomes void

1) when it ceases to be enforceable 2) before it ceases to be enforceable

Marks : 1.0
3) no such condition necessary 4) none of above Id: 45317
Explanation:
Q71) The right of subrogation in a contract of guarantee is available to the Marks : 1.0
Id: 45493

1) creditor 2) principal debtor

3) surety 4) indemnifier

Explanation:

Q72) In case of death of a joint promisor(s), the promisee Marks : 1.0

 Id: 45492

1) can enforce the contract against the 2) cannot enforce the contract against the survivor(s) of the
said joint promisor(s) survivor(s) of the said joint promisor(s) alongwith the joint promisors who are
alive

3) both (a) & (b)

4) cannot enforce the contract against any of

them

Explanation:
Q73) Section 7 of the Sale of Goods Act, 1930 makes contract of sale Marks : 1.0
Id: 45469

1) voidable at the instance of the buyer 2) voidable at the instance of the seller

3) void 4) neither (a) nor (b) nor (c)

Explanation:
Q74) Where the price of the goods under a contract of sale has to be determined by the
valuation of a third party, and the valuer fails or refuses to make the valuation, the Marks : 1.0
contract under section 10 of the Sale of Goods Act, 1930, shall Id: 45486
1) become void 2) be voidable
3) remain valid 4) become impossible

Explanation:

Q75) The term "goods" in the sale of goods means Marks : 1.0
Id: 45547
1) specific goods only 2) ascertained goods only

3) ownership 4) subject matter.

Explanation:
Q76) Generally, the joint promisors can Marks : 1.0
Id: 45380 1)
compel each other to contribute equally 2) not to compel each other to contribute equally

3) cannot compel each other to contribute 4) none of the above

Explanation:

Q77) Where the price of the goods under a contract of sale is to be fixed by the valuation
of a third party who fails to fix the valuation, but goods are supplied to the buyer, Marks : 1.0
under section 10 of the Sale of Goods Act, 1930 the buyer is Id: 45487
1) liable to pay the reasonable price of the goods 2) liable to pay the minimum price of the goods

3) not liable to pay any price until fixed by the 4) liable to pay the maximum retail price valuer

Explanation:
Q78) A contract creates – Marks : 1.0
Id: 45340

1) Rights in personam 2) Rights in rem

3) Only rights & no obligations 4) Only obligations & no rights

Explanation:

Q79) Contract discharge by mutual agreement may involve Marks : 1.0

Id: 45566

1) Novation 2) Rescission

3) Alteration 4) All the above

Explanation:
Q80) Where the neglect or refusal of the buyer, to take delivery of goods amounts to a Marks : 1.0 repudiationof the contract, the seller
may sue for the Id: 45466

1) price or damages 2) price only

3) damages only 4) both for price & damages

Explanation:

Q81) Which of the following documents is a document of title to 'goods' within the Marks : 1.0 meaning of section 2(4) of the Sale of Goods
Act, 1930 Id: 45553
1) Warehouse keeper's certificate Q82) Law of contract primarily

1) specifies the circumstances in which promises are

3) both (a) and (b) binding on the parties to the contract

Explanation:
3) lays down the circumstances under which a
promise may be made

Explanation:
2) Wharfinger's Marks : 1.0
Id: 45355

2) lays down certain norms by which the parties

certificate 4) neither
are bound

(a) nor (b).

4) all the above

Q83) In case of breach of warranty, the buyer can Marks : 1.0

Id: 45414

1) claim damages only 2) repudiate the contract

3) cannot return the goods 4) refuse to take delievery of goods

Explanation:

Q84) A letter of acceptance sent by post is lost in transit Marks : 1.0

Id: 45326
1) there is a concluded contract as the letter of 2) there is no concluded contract as the
acceptance is put in the course of acceptance has not come to the knowledge of
transmission the proposer

3) there is no concluded contract as the 4) all the above

acceptance has not been communicated to the proposer

Explanation:
Q85) Price lists and catalogues, advertisements in newspapers are Marks : 1.0
Id: 45527

1) offers. 2) invitations to offer.

3) acceptances. 4) cross-offers.

Explanation:
Q86) Acceptance to be valid must Marks : 1.0
Id: 45315

1) be absolute 2) be unqualified

3) both be absolute & unqualified 4) be conditional

Explanation:

Q87) When the consent is caused by undue influence, the contract under section 19A is Marks : 1.0
Id: 45330

1) valid 2) void
3) voidable 4) illegal

Explanation:

Q88) The word "Property" in the Sale of Goods Act, 1930 means Marks : 1.0
Id: 45428

1) seller or transferer 2) buyer or purchaser

3) goods or subject matter 4) ownership or title

Explanation:

Q89) Every promise or set of promises forming the consideration for each other under
section 2(e) is called
1) reciprocal promise 2) contract

Marks : 1.0
3) agreement 4) none of the above Id: 45303
Explanation:
Q90) Contractual rights and duties are created by- Marks : 1.0
Id: 45534

1) State 2) Statute

3) Parties 4) Custom or Usage

Explanation:

Q91) If a sell is by sample as well as by description, implied condition is that the goods Marks : 1.0 shall correspond with Id: 45405
1) sample 2) description

3) both sample & description 4) either sample & description.

Explanation:
Q92) Where under a contract of sale, a condition provides for the defeasance of a certain
right on the happening of a specified event, such a condition is a
1) condition concurrent 2) condition subsequent

Marks : 1.0
3) condition precedent 4) either (a) or (c) Id: 45449
Explanation:
Q93) A contract is – Marks : 1.0
Id: 45346

1) A legal obligation 2) An agreement plus a legal obligation

3) Consensus ad idem 4) An agreement plus a legal object

Explanation:

Q94) A contract of sale under section 4 of the Sale of Goods Act, 1930 Marks : 1.0
Id: 45440
1) may be absolute 2) may be conditional

3) either (a) or (b) 4) only (a) and not (b)

Explanation:
Q95) When the unpaid seller has parted with the goods to a carrier and the buyer has Marks : 1.0 become_x000D_ insolvent he can
exercise ------------------ Id: 45544
1) right of lien. 2) right of stoppage in transit.

3) right of resale. 4) none of the above.

Explanation:

Q96) A contract based on the happening or non- happening of a future event under section Marks : 1.0
31 is called Id: 45366

1) a contingent contract 2) a wagering contract

3) a contract marked with uncertainty and hence 4) none of the above

void

Explanation:
Q97) A promisor can perform Marks : 1.0
Id: 45376

1) the promise himself 2) the promise through his representative

competent to perform

4) both (a) & (b)

3) the promise through his representative
irrespective of the competency of that
representative
Explanation:
Q98) Acceptance of delivery of goods is deemed to take place when the buyer -------------- Marks : 1.0
1) intimates to the seller that he had accepted Explanation:
Id: 38809
the goods.
2) does any act to the goods, which is
inconsistent with the ownership of the seller.
3) rejects and retains the goods after the lapse of
a reasonable time, without intimating the
seller. 4) any of the above.

Q99) A contract of sale of goods under section 5 of the Sale of Goods Act, 1930 may Marks : 1.0 provide for Id: 45459
1) immediate payment and immediate delivery 2) delivery of goods and payment by instalments

3) either (a) or (b) 4) only (a) and not (b)

Explanation:
Q100) An unpaid seller can exercise the right of stoppage in transit, when the carrier holds Marks : 1.0
the goods Id: 45478

1) as seller’s agent 2) as buyer’s agent

3) as agent of both of them 4) in his own name

Explanation:
Q101) On attaining the age of majority, a minor's agreement Marks : 1.0
Id: 45528

1) is void. 2) cannot be ratified.

3) becomes void. 4) can be ratified.

Explanation:

Q102) Contract becomes voidable when consent is obtained by Marks : 1.0

Id: 45560

1) coercion 2) undue influence

3) misrepresentation 4) all of these

Explanation:
Q103) Doctrine of Caveat Emptor means ------------ Marks : 1.0
Id: 38808

1) let the seller beware. 2) let the buyer beware.

3) let the creditor beware. 4) none of the above.

Explanation:

Q104) Delivery of goods may be________ Marks : 1.0

Id: 45550

1) actual 2) symbolic

3) constructive 4) all of these

Explanation:
Q105) In a conditional contract of sale of goods under section 4 of the Sale of Goods Act, Marks : 1.0
1930, the conditions Id: 45446

1) has to be contingent 2) has to be promissory

3) may be either contingent or promissory 4) only promissory and not contingent

Explanation:

Q106) Which of the following documents is a document of title to goods Marks : 1.0
Id: 45410

1) bill of exchange 2) promissory note

3) dock warrant 4) all the above

Explanation:
Q107) A contract, performance of which becomes impossible or unlawful becomes Marks : 1.0
Id: 45392
1)void when the performance becomes unlawful 2) void or impossible 3) voidable when the performance
becomes impossible

4) neither becomes void nor voidable

Explanation:
Q108) The term ‘property’ as used in the Sale of Goods Act, 1930 means ______ Marks : 1.0
Id: 45551

1) possession 2) ownership

3) ownership and possession both 4) the subject matter of contract of sale.

Explanation:

Q109) Communication of a proposal is complete when it comes to the knowledge of the Marks : 1.0 person to whom it is made Id: 45349

1) TRUE 2) Partly true

3) FALSE 4) None of the above

Explanation:

Q110) In a sale, the property in goods, Marks : 1.0

Id: 45398

1) is transferred to the buyer 2) Yet to be transferred to the buyer

3) transferred when goods are delievered 4) transferred when price is paid.

Explanation:

Q111) X purchased goods on behalf of Y by paying from his own pocket for the time being. Marks : 1.0
 X is about to deliver goods to Y his principal and came to know that Y became Id: 45559
insolvent. In this case X as an agent is entitled to imply which right?
1) Right of indemnification 2) Right of stoppage in transit

3) Right of retainer 4) Right to remuneration

Explanation:

Marks : 1.0
Q112) If the proposer prescribes the mode & manner of acceptance, the acceptance Id: 45337
1) can be in any manner & mode 2) should be in the manner & mode prescribed 3) can be in

any reasonable mode & manner 4) all the above

Explanation:
Q113) A appoints B as his agent, by way of a power of attorney. This is an example of Marks : 1.0
Id: 45537

1) Express contract. 2) Implied contract.

3) Tacit contract. 4) Unlawful contract.

Explanation:

Q114) A contract creates Marks : 1.0

Id: 45526

1) rights and obligations of the parties to it. 2) obligations of the parties to it.

3) mutual understanding between the parties to 4) mutual lawful rights and obligations of the
it. parties to it.

Explanation:
 Marks : 1.0
Q115) The Contract Act came into force Id: 45506
1) from 1 september 1972 2) before 1 september 1882

3) from 1 september 1872 4) after 1 september 1872

Explanation:
Q116) A contingent contract based on the specified uncertain event not happening within a Marks : 1.0 fixed time under section 35
Id: 45375

1) can be enforced if the event does not happen 2) can be enforced if before the expiry of time
within the time fixed fixed, it becomes certain that such an event
shall not happen

3) cannot be enforced at all, being void 4) both (a) & (b)

Explanation:
Q117) In case the promisee prescribes the manner and time of performance of promise Marks : 1.0
Id: 45387

1) the performance must be in the manner and at 2) the performance can be in a different manner
the time prescribed but at the time prescribed

3) the performance can be in the manner 4) the performance need not be in the manner prescribed but
at a time beyond the time and time prescribed

prescribed

Explanation:

Q118) Where a contract consists of reciprocal promises and such reciprocal promises are Marks : 1.0 to be simultaneously performed -
Id: 45350

1) Promisor need not perform his part of promise 2) Promisor need not perform his part of promise
at all unless Promisee is ready and willing to
perform his reciprocal promise

3) Promisor has to compel Promisee to perform 4) There is no valid contract at all.

 his promise first

Explanation:
Q119) When the consent is caused by misrepresentation, the contract under section 19 is Marks : 1.0
Id: 45329

1) valid 2) void

3) voidable 4) illegal

Explanation:

Q120) If a seller makes use of pretended bidding at an auction, to raise the price, the sale is Marks : 1.0 Id: 45491

1) voidable at the option of the buyer 2) void

3) valid 4) Illegal

Explanation:
Q121) Price' under section 2(10) of the Sale of Goods Act, 1930, means Marks : 1.0
Id: 45426
1) the money consideration 2) the consideration given in the form of goods

3) partly money consideration and pa; 4) either (a) or (b) or (c).

consideration in goods

Explanation:

Marks : 1.0
Q122) Contract of Sale under section 4 of the Sale of Goods Act, 1930 comprises of Id: 45436
1) executory contract of sale 2) executed contract of sale
3) bothexecutory and executed contracts of sale 4) only (a) and not (b)

Explanation:
Q123) A 'sale of goods' under the Sale of Goods Act, 1930, creates Marks : 1.0
Id: 45444

1) a jus in rem 2) a jus in personam

3) both (a) and (b) 4) either (a) or (b) depending on the facts &
circumstances of the case

Explanation:

Q124) Marks : 1.0

The term consensus ad-idem means
Id: 45360
1) general consensus 2) reaching an agreement

3) meeting of minds upon the same thing in the 4) all the above
same sense
Explanation:
Q125) Whether a given contract is one of sale or some other kind of contract, in respect of Marks : 1.0 goods, it is a question of Id: 45439

1) form 2) substance

3) terminology 4) both form and substance

Explanation:

Q126) Mercantile agent means the person Marks : 1.0

Id: 45572

1) who sell goods, or consigns for the purpose of 2) who only sell or purchase
sell, or buy goods or raise money on security
of goods
3) who only consign goods

4) who only transfer goods

Explanation:

Marks : 1.0
Q127) Enforceable agreements are the one Id: 45321
1) made by free consent 2) parties to the contract are competent to enter
into an agreement
3) having lawful consideration & lawful object 4) all the above

Explanation:

Q128) A person is said to be 'insolvent' who has ceased to pay his debts in the ordinary Marks : 1.0
Id: 45421
course of business, or cannot pay his debts as they become due whether he has
committed an act of insolvency or not', is the definition of insolvency given in
1) The Indian Partnership Act, 1932 2) The Sale of Goods Act, 1930

3) The Indian Contract Act, 1872 4) all the above

Explanation:
Q129) The term “goods” under Sale of Goods Act, 1930 does not include Marks : 1.0
Id: 38806

1) goodwill. 2) actionable claims

3) stocks and shares 4) harvested crops

Explanation:

Marks : 1.0
Q130) Where a letter of the acceptance sent by post is lost in transit there is Id: 45496
1) no contract as the acceptance has not come to 2) is no contract as the acceptance has not been
the knowledge of the offerer. communicated to the offerer.

3) a contract as the letter of acceptance is put in 4) no contract as the acceptance is not in

the course of transmission. position to accept the offer

Explanation:
Q131) A's son forged B's name to a promissory note. B under threat of prosecuting A's son Marks : 1.0 obtains a bond from A for the
amount of the forged note. If B sues on this bond the Id: 45328 court
1) has no jurisdiction in this case 2) must not set aside the bond
3) may set aside the bond 4) none of above
Explanation:

Q132) when it comes to the knowledge of the proposer Marks : 1.0

Id: 45313

1)when it comes to the knowledge of the 2) when it is put in the course of transmission proposer 3)
when it is communicated to the acceptor that the acceptance has reached the proposer

4) when the proposer conveys the acceptance to

the acceptor

Explanation:
Q133) Goods displayed in a shop with a price tag is an Marks : 1.0
Id: 45309
1) offer 2) invitation to offer

3) counter offer 4) none of the above

Explanation:
Q134) In a valid contract, what comes first Marks : 1.0
Id: 45306

1) enforceability 2) acceptance

3) promise 4) proposal
Explanation:

Q135) Transfer of actionable claim(s) is governed by Marks : 1.0

Id: 45420

1) The Transfer of Property Act, 1882 2) The Sale of Goods Act, 1930

3) The Indian Contract Act, 1872 4) all the above

Explanation:
Q136) Free consent is said to be free when it is not caused by Marks : 1.0
Id: 45565

1) Coercion 2) Undue influence

3) fraud 4) All the above

Explanation:
Q137) The relationship of principal and agent may be created by Marks : 1.0
Id: 45520

1) Express agreement 2) Implied agreement

3) both a & b 4) none of these

Explanation:

Q138) A contract – Marks : 1.0

Id: 45344

1) May be void as originally entered into. 2) May become void subsequent to its formation
3) Cannot become void under any circumstances 4) May become void at the will of a party

Explanation:
Q139) Under section 7 of the Sale of Goods Act, 1930, a contract for sale of specific goods Marks : 1.0 is void Id: 45470

1) where the goods have perished/dam¬aged 2) where the goods have perished/ damaged to without
knowledge of the seller the knowledge of the seller

3) where the goods have perished/ damaged, 4) where the goods have perished/dam¬aged to
irrespective of without or to the knowledge of the knowledge of the buyer the seller

Explanation:

Q140) An unpaid seller has not given notice of resale to the buyer. On resale there is a loss Marks : 1.0 Id: 45484

1) the unpaid seller can recover it from the buyer 2) the unpaid seller cannot recover it from the

buyer

3) the buyer can recover it from the unpaid seller 4) the buyer must compensate the unpaid seller
Explanation:

Q141) The term 'delivery' has been defined, in the Sale of Goods Act, 1930 under Marks : 1.0
Id: 45548
1) section 2(3) 2) section 2(2)

3) section 2(1) 4) section 2(4).

Explanation:
Q142) Where no price is fixed in a contract of sale of goods, under section 9 of the Sale of Marks : 1.0
Goods Act, 1930 Id: 45479
the buyer shall pay the maximum price the buyer shall pay the lowest price

the buyer shall pay a reasonable price the buyer shall pay the price as demanded by
the seller

Explanation:
Q143) A contract of present sale of future goods, under section 6(3) of the Sale of Goods Marks : 1.0
Act, 1930, operates as a Id: 45464

1) contract of sale 2) agreement to sell

3) either (a) or (b) depending on the terms of the 4) estoppel or quasi contract of sale
contract

Explanation:
Q144) A contract without consideration under section 25 is Marks : 1.0
Id: 45335

1) valid 2) voidable

3) void 4) illegal

Explanation:

Q145) Communication of a proposal is complete when it comes to the knowledge of the Marks : 1.0 person to _x000D_ whom it is made.
Id: 45543

1) TRUE 2) Partly True

3) FALSE Explanation: 4) None of the above.

Marks : 1.0
Q146) No contract can arise, if the - Id: 45542
1) offer is not made to an ascertained person 2) acceptance is made by an unascertained
person

3) offer is made to an ascertained person 4) acceptance is made by an ascertained person.

Explanation:
Q147) The Fixed Deposit Receipts (FDRs) are goods within the meaning of section 176 of Marks : 1.0 the Indian Contract Act, 1872 and
section 2(7) of the Sale of Goods Act, 1930. The Id: 45437 statement is
1) FALSE 2) ambigous

3) partly true 4) TRUE

Explanation:
Q148) In which of the ways can a contract be discharged by operation of law? Marks : 1.0
Id: 45354

1) Death of Promisor 2) Insolvency of Promisor

3) Merger of Rights 4) All of the above

Explanation:

Q149) The transactions collateral to an illegal agreement are- Marks : 1.0

Id: 45345

1) Not affected in any manner 2) Also tainted with illegality

3) Voidable at the option of the plaintiff 4) Void

Explanation:

Marks : 1.0
Q150) Agreement without consideration is valid Id: 45365
1) when made out of love & affection due to near 2) when made to compensate a person who has
relationship already done something voluntarily
3) when made to pay a time barred debt 4) all the above

Explanation:

Q151) Communication of acceptance is complete as against the proposer Marks : 1.0

Id: 45312

1) when it comes to the knowledge of the 2) when it is put in the course of transmission to proposer
him so as to be out of power of the acceptor

3) when the acceptance is communicated to the 4) all the above

proposer

Explanation:
Q152) Inadequacy of consideration does not make the contract Marks : 1.0
Id: 45363

1) void 2) voidable
3) unenforceable 4) neither void nor voidable

Explanation:

Q153) A bill of lading is Marks : 1.0

Id: 45407

1) a negotiable instrument like a bill of exchange 2) a negotiable instrument like a promissory note

3) either (a) or (b) 4) neither (a) nor (b)

Explanation:
Q154) The term 'goods' has been defined in the Sale of Goods Act, 1930, under Marks : 1.0
Id: 45555
1) section 2(5) 2) section 2(6)

3) section 2(7) 4) section (8).

Explanation:
Q155) In case of default by joint promisors the promisee Marks : 1.0
Id: 45382

1) can sue any one of them for the entire promise 2) can sue any one of them to the extent of his
share in the joint promise

3) both (a) & (b) 4) cannot sue any single promisee

Explanation:

Q156) A contingent contract to do or not to do anything on the happening of an uncertain Marks : 1.0
future event under section 32 Id: 45367
1) is never enforceable 2) becomes enforceable only on the happening of
that event

3) enforceable since the time of making it 4) becomes enforceable in the immediate

possibility of happening of that event

Explanation:
Q157) The documents of title to goods' in the Sale of Goods Act, 1930 have been described, Marks : 1.0 under Id: 45552

1) section 2(4) 2) section 2(4) 3) section 2(1) 4) section (2).

Explanation:

Q158) A contingent contract based on the specified uncertain event happening within a Marks : 1.0 fixed time under section 35 Id: 45374

1) remains valid even if the event does not 2) becomes void at the expiration of the time happen
within that fixed time fixed

3) becomes void if the happening of that event 4) both (b) &

(c) becomes impossible before the expiry of time fixed

Explanation:
Q159) Right of line exercise under sale of goods act under the following cases Marks : 1.0
1) where goods have been sold without
any
Id: 45570

2) where the goods have been sold on credit but

stipulation to credit 3) where the buyer becomes insolvent
Explanation: 4) all the above
the term of credit has
expired

Q160) Where the goods are not specific and ascertained at the time of the making of the Marks : 1.0 contract, the contract can be Id: 45452

1) contract of sale 2) agreement to sell

3) either (a) or (b) 4) neither (a) nor (b)

Explanation:

Q161) The Sale of Goods Act, 1930 in its operationis Marks : 1.0
Id: 45396

1) prospective 2) retrospective

3) prospective in certain respects and 4) only (c) and not (a) or (b).
 retrospective in certain other respects

Explanation:

Q162) The distinction between sale and agreements to sell determines Marks : 1.0
Id: 45447

1) rights and liabilities of the parties to contract 2) nature of goods in the contract

3) nature of property in the contract 4) price of the contract

Explanation:
 Marks : 1.0
Q163) A contingent agreement based on an impossible event under section 36 Id: 45369

1) is void 2) is void till the impossibility is known

3) becomes void on the knowledge of 4) all the above impossibility

Explanation:

Q164) Contracts with pardanashin woman raises the presumption of Marks : 1.0
Id: 45515

1) domination of will. 2) undue influence.

3) farud. 4) none of the above.

Explanation:
Q165) Delivery of the key of a warehouse where goods are lying amounts to

1) symbolic delivery 2) actual delivery

Marks : 1.0
3) constructive delivery 4) none of these Id: 45571
Explanation:

Q166) Under the Sale of Goods Act 1930 existing goods are classified under Marks : 1.0
Id: 45567
1) specific goods 2) ascertained goods

3) Unascertained goods 4) All the above

Explanation:
Q167) Where one of the parties is under a mistake as to matter of fact the contract is Marks : 1.0
Id: 45332

1) valid 2) void

3) voidable 4) illegal

Explanation:

Q168) In a conditional contract of sale of goods, a condition inserted for the benefit of one Marks : 1.0 party is waived by that party, and that
party Id: 45451
1) cannot insist upon that condition in future 2) can insist upon that condition in future as
a matter of right

4) only (a) and not (b) or (c).

3) can insist upon that condition in future only if
that party gives a reasonable notice of such
intention to the of party
Explanation:
Q169) Which one of the following is correct Marks : 1.0
Id: 45323

1) past consideration is no consideration 2) consideration can be past, present or future

3) consideration can only be present 4) consideration can only be present & future
Explanation:

Q170) In a contract not specifying the time for performance, the promisor can perform the Marks : 1.0 contract Id: 45384

1) within any time howsoever long it may be 2) within the shortest time

3) within a reasonable time 4) none of the above

Explanation:
Q171) The court stated that the advertisement in Carlill v Carbolic Smoke Ball Co. was Marks : 1.0
Id: 45529
which of the following?
1) An invitation to treat 2) An offer.

3) A statement of intention. 4) Of no legal effect whatsoever

Explanation:

Marks : 1.0
Q172) If a contract is silent about who is to appropriate the goods Id: 45432
1) the buyer is to appropriate 2) seller is to appropriate

3) party who is under contract to act first, has to 4) any party may appropriate
appropriate

Explanation:
Q173) Where a third party is prevented from making the valuation of goods, as price to be Marks : 1.0
Id: 45488
paid by the buyer to the seller, by a party to the agreement, under section 10 of the
Sale of Goods Act, 1930, the other party has a right to
1) sue for specific performance 2) sue for damages

3) both (a) and (b) 4) either (a) or (b)

Explanation:
Q174) An agreement not enforceable by law is stated to be void under Marks : 1.0
Id: 45296

1) section 2(d) 2) section 2(e)

3) section 2(f) 4) section 2(g).

Explanation:

Q175) Which one of the following does not amount to fraud Marks : 1.0
Id: 45361
1) suggestion as a fact which is not true, by one 2) active concealment of a fact who does not believe it
to be true 3) a representation made without knowing it to be false, honestly believing it to be true
4) a promise made without any intention of
performing it

Explanation:

Q176) Under section 6 of the Sale of Goods Act, 1930, the subject-matter of a contract of Marks : 1.0 sale of goods, can be Id: 45462

1) the existing goods owned and possessed by 2) the future goods which are yet to be produced the
seller
3) either existing or future goods

4) only existing goods & not future goods

Explanation:
Q177) If A renders some service to B at B's desire, and after a month B promises to Marks : 1.0
Id: 45512
compensate A for the service rendered to him, it is a
1) present consideration. 2) past consideration

3) future consideration. 4) not a consideration at all.

Explanation:

Marks : 1.0
Q178) Unless otherwise agreed, where goods are delivered to the buyer & he rejects them Id: 45461
1) he is not bound to return them to seller 2) it is sufficient if he intimates to the seller
that he has rejected the goods

3) he is bound to deliver them to the seller 4) he may keep them with him
Explanation:
Q179) The term 'buyer', under the Sale of Goods Act, 1930, has Marks : 1.0
Id: 45546

1) been defined under section 2(1) 2) been defined under section 2(2) 3) been defined

under section 2(3) 4) not been defined.

Explanation:

Marks : 1.0
Q180) Under section 8 of the Sale of Goods Act, 1930, the contract becomes Id: 45475
1) voidab initio 2) avoided from the date of perishing of goods
3) avoided from the date of knowledge of goods 4) only (a) and not (b) or (c)
having been perished

Explanation:
Q181) In contract for sale of immovable property the presumption is that the time is Marks : 1.0
Id: 45390

1) the essence of the contract 2) not the essence of the contract

3) the essence of the contract but failure does 4) not the essence of the contract but makes the not
make the contract voidable contract voidable at the instance of the other party

Explanation:
Q182) A proposal stands revoked Marks : 1.0
Id: 45319
1) by communication of notice of revocation by 2) by failure of acceptor to fulfil a condition the
proposer precedent

3) by death or insanity of proposer to the 4) all the above knowledge of

acceptor

Explanation:

Q183) A condition is a stipulation which is ________ Marks : 1.0

Id: 45521
1) Not essential to the main purpose of contract 2) essential to the main purpose of contract of
of sale the sale

3) collateral to the main purpose of contract of 4) None of the above.

sale

Explanation:

Q184) A contract for sale of goods to be delivered at a future date shall Marks : 1.0
1) be invalid if the seller has not the goods in Id: 45463
present possession 2) be invalid if the seller has not contracted for
the purchase of those goods
3) be invalid if the seller only expects or hopes
to acquire 4) not be invalid if the seller has not got the
goods in present possession nor has
contracted for the purchase of the same nor
has any expectation of getting them
Explanation:

Q185) A contract is- Marks : 1.0

 Id: 45517

1) An agreement enforceable by third parties 2) An agreement by competent people 3)

An agreement enforceable by law 4) Not an agreement at all

Explanation:

Q186) Section 9 of the Sale of Goods Act, 1930 provides for fixing the price of goods Marks : 1.0
Id: 45483

1) by the contract itself 2) in the manner agreed upon by the parties

3) in the course of dealing between the parties 4) either (a) or (b) or (c)

Explanation:
Q187) Where there is an anticipatory breach of contract, when is the injured party entitled to Marks : 1.0
sue? Id: 45531
1) Only after a reasonable time. 2) From the date the other party indicates their
intention not to complete the contract.

3) From the date that the other party fails to 4) If it is an anticipatory breach of contract the actually
perform their part of the contract. injured party has no right to sue for beach of contract.

Explanation:

Q188) Which are the exceptions to the Doctrine of Caveat Emptor Marks : 1.0
Id: 45569

1) In case of misrepresentation by the seller 2) In case of sale by discription

3) Marchantable Quality 4) All the above

Explanation:

Q189) A contract is defined as -an agreement creating and defining obligations between the Marks : 1.0
parties by Id: 45523

1) Salmond 2) Halsbury

3) Sir William Anson 4) None of the above

Explanation:

Q190) A seller delivers goods in excess of the quantity ordered for, the buyer may Marks : 1.0
Id: 45465
1) accept the whole 2) reject the whole

3) accept the goods ordered for & return the 4) none of these excess

Explanation:

Q191) Section 8 of the Sale of Goods Act, 1930 deals with cases of Marks : 1.0
1) impossibility of performance of the Explanation:
Id: 45473
contract before the formation of the
contract 2) impossibility of performance of the contract at
the time of formation of the contract
3) impossibility of performance of the
contract subsequent to the formation of the 4) all the above
contract

Q192) In case of death of a joint promisor(s) the promisee Marks : 1.0

Id: 45383
1) can enforce the contract against the 2) cannot enforce the contract against the survivor(s) of the
said joint promisor(s) survivor(s) of the said joint promisor(s) alongwith the joint promisors who are
alive

3) both (a) & (b)

4) cannot enforce the contract against any of

them

Explanation:

Q193) In a contract of sale of goods, under section 4 of the Sale of Goods Act, 1930, there Marks : 1.0
Id: 45438
1) must be transfer of absolute or general 2) must be a transfer of special property in
property in the goods the goods

3) must be transfer of either absolute or special 4) neither (a) nor (b).

property in the goods
Explanation:
Q194) Which of the following is necessary for the formation of the contract of sale of goods Marks : 1.0 under section 5 of the Sale of
Goods Act, 1930 Id: 45456
1) payment 2) delivery

3) both payment and delivery 4) neither payment nor delivery

Explanation:

Q195) Which one of the following is an essential element of a valid contract? Marks : 1.0
Id: 45513

1) Consideration 2) Free consent

3) Competent Parties 4) all of the above

Explanation:

Marks : 1.0
Q196) Delivery' within the meaning of section 2(1) of the Sale of Goods Act, 1930, can be Id: 45404
1) actual 2) constructive

3) symbolic 4) either (a) or (b) or (c).

Explanation:

Q197) An unpaid seller has not given notice of resale to the buyer. On resale there is a Marks : 1.0
profit. The unpaid seller Id: 45490
1) is bound to hand it over to the buyer 2) is not bound to hand it over to the buyer

3) may dispose it off in any manner he likes 4) may set it off against a previous loss in similar
circumstances
Explanation:
Q198) Inadequacy of consideration is relevant in determining the question of Marks : 1.0
Id: 45364

1) fraud 2) misrepresentation

3) undue influence 4) free consent

Explanation:
 Marks : 1.0
Q199) What is true of misrepresentation Id: 45370
1) it is the same thing as fraud 2) it renders the contract voidable

3) it may be due to innocence 4) both (b) & (c)

Explanation:
Q200) Which of the following is true as regards an 'agreement to sell' in respect of goods Marks : 1.0
Id: 45445
1) it is an executed contract which creates a jus 2) it is an executory contract which creates a jus
in rem in personam
3) it is an executed contract which creates a jus 4) it is an executory contract which creates a jus
in personam in rem

Explanation:
 Marks : 1.0
Q201) There is a constructdelivery of goods Id: 45442
1) when the seller hands over to the buyer the 2) Where a third person in possession of the
key of the warehouse where the goods are goods acknowledges to the buyer that he
lying holds them on his behalf

3) When the seller physically delivers goods to 4) when the seller asks the buyer to take
buyer delivery of the goods
Explanation:

Q202) In Sale of Goods Act several provisions of the Indian Contract Act have been retained Marks : 1.0
Id: 45397
1) to meet the need of the buyers 2) to meet the need of the sellers

3) to meet the need of both the buyers and 4) to meet special conditions existing in
sellers India regarding sale of goods
Explanation:
Q203) In an agreement to sell, the property in goods is transferred Marks : 1.0
Id: 45453

1) in future 2) at present

3) either (a) or (b) 4) neither (a) nor (b)

Explanation:

Marks : 1.0
Q204) An agreement enforceable at law is a Id: 45293
1) enforceable acceptance 2) accepted offer

3) approved promise 4) contract

Explanation:
Q205) Competency to contract relates to Marks : 1.0
Id: 45322

1) age of the parties 2) soundness of mind of the parties

3) both age & soundness of mind 4) intelligence of the parties

Explanation:

Q206) Where under a contract of sale of goods, obligations of one party are kept in Marks : 1.0
abeyance till the fulfillment of certain conditions, it is a case of Id: 45448
1) condition precedent 2) condition concurrent
3) condition subsequent 4) either (a) or (b)

Explanation:
Q207) Under section 10 of the Sale of Goods Act, 1930 in cases where under an agreement Marks : 1.0 two valuers, one appointed by each
party, have to function, in such cases, the Id: 45489 valuation by one alone is
1) sufficient 2) futile

3) sufficient with the leave of the court 4) either (b) or (c)

Explanation:

Q208) In case of absence of transfer of title or registration, the purchaser Marks : 1.0
Id: 45467

1) can claim damages for breach of conditions or 2) cannot claim damages for breach of
warrantees conditions and warrantees

3) can claim full price back 4) none of above

Explanation:

Q209) If the time is not the essence of the contract the failure to perform the contract by the Marks : 1.0
specified time makes the contract Id: 45389
1) void 2) voidable at the instance of the promisee
3) remains valid & can be performed at any 4) remains valid & can be performed at any subsequent
time without being liable for the subsequent time without being liable for the loss suffered by the
promisee loss suffered by the promisee

Explanation:

Q210) A general offer open for world at large can be accepted Marks : 1.0
Id: 45359

1) by sending a communication of acceptance 2) by complying with the conditions of offer

3) by tendering himself to comply the conditions 4) none of the above

of offer

Explanation:

Q211) When is revocation of an offer effective? Marks : 1.0

Id: 45530 1)
When it is put in the post by the offeree 2) When it is received by the offer or his agent.
3) After acceptance 4) An offer cannot be revoked.

Explanation:

Marks : 1.0
Q212) What is a reasonable time for performance of a contract Id: 45385
1) is a question of fact 2) is a question of law

3) is a mixed question of fact & law 4) is a question of prudence

Explanation:

Q213) Reciprocal promises provide for doing certain things which are legal & certain others Marks : 1.0 which are illegal, under section
57 Id: 45391
1) the entire set of promises is void 2) the first set is voidable, but the second set
is void

3) the first set is valid but the second set is void 4) the entire set of promises is valid

Explanation:
Q214) An agreement consists of reciprocal promises between at least Marks : 1.0
Id: 45525
1) four parties. 2) six parties.

3) three parties. 4) two parties.

Explanation:

Q215) In which type of agreement is the intention to create legal relations presumed to Marks : 1.0
exist? Id: 45533
1) Agreements between friends or family. 2) Commercial or business agreements.

3) All written agreements. 4) The intention to create legal relations is never

presumed in an agreement.
Explanation:
Q216) Which of the following are not goods within the meaning of section 2(7) of the Sale of Marks : 1.0
 Goods Act, 1930 Id: 45434

1) jubilee coins 2) coins of antiquity

3) current coins Sold as curiosity 4) none of the above

Explanation:

Q217) Under section 2(14) of the Sale of the Goods Act, 1930, 'specific goods' means Marks : 1.0
Id: 45433

1) goods which are capable of identification 2) generic goods

3) goods identified and agreed upon 4) either (a) or (c)

Explanation:
Q218) The right of lien exercised by an unpaid seller is to

1) retain possession 2) regain possession

Marks : 1.0
3) recover price & other charges 4) recover damages Id: 45471
Explanation:
Q219) A contract means Marks : 1.0
Id: 45561

1) an agreement 2) enforceability of an agreement

3) Option A & B 4) Offer & proposal

Explanation:
Q220) The acceptance containing additions, limitations or other modifications shall amount
to
1) acceptance of the offer. 2) a counter offer.

Marks : 1.0
3) a valid acceptance. 4) cross-offers. Id: 45510
Explanation:

Q221) Which of the following is not an essential ingredient of a contract of sale of goods Marks : 1.0
Id: 45457

1) passing of title in goods 2) physical delivery of goods

3) both (a) and (b) 4) neither (a) nor (b)

Explanation:
 Marks : 1.0
Q222) On the valid performance of the contractual obligation by the parties the contract Id: 45508
1) is discharged 2) becomes enforceable

3) becomes void 4) becomes voidable

Explanation:

Q223) An agreement to do an act impossible in itself under section 56 is Marks : 1.0

Id: 45373

1) void 2) valid

3) voidable 4) unenforceable

Explanation:
Q224) Misrepresentation under section 18 means Explanation:
Marks : 1.0
Id: 45356
1) a positive assertion, in a manner not
warranted by the information of the person 2) any breach of duty, which gains an advantage
making it, not true but he believes it to be true to the person committing it, by misleading
another to his prejudice
3) causing a party to make an agreement to make
a mistake as to the subject matter of contract 4) all the above

Q225) A person is deemed to be in a position to dominate the will of another by undue Marks : 1.0 influence if the mental capacity is affected
temporarily or permanently by Id: 45357
1) reason of age 2) reason of illness

3) mental or bodily distress 4) all the above

Explanation:
 Marks : 1.0
Q226)
An acceptance can be revoked Id: 45318
1) at any time before the communication of 2) after its acceptance comes to the knowledge
acceptance is complete as against the of the promisee
promisee
3) both (a) & (b)

4) neither (a) nor (b).

Explanation:

Q227) Past consideration is valid in Marks : 1.0

Id: 45324

1) England only 2) India only

3) both in England & India 4) neither in England nor in India

Explanation:
Q228) Under section 2(b) if the person to whom the proposal is made signifies his assent
the proposal is said to have been
1) accepted 2) agreed

Marks : 1.0
3) provisionally agreed 4) tentatively accepted Id: 45299
Explanation:

Q229) ______________is made by words spoken Marks : 1.0

Id: 45564

1) Express contract 2) Implied Contract

3) Quasi Contract 4) Unlawful Contract

Explanation:
Q230) Under section 2(c) promisee is the Marks : 1.0
Id: 45308

1) person who makes the proposal 2) person who accepts the proposal

3) person who makes the promise 4) person to whom proposal is made

Explanation:

Q231) A married B and left for US, promising to pay B Rs. 50,000 per month till such time A Marks : 1.0 was in the US. This is a case of-
Id: 45501

1) Social obligation, not an agreement under 2) Void contract contract act

3) Voidable contract

4) Valid contract

Explanation:
Q232) Where one of the joint promisors makes a default in contribution of performance Marks : 1.0
Id: 45381

1) the other joint promisors have no right against 2) have to bear the loss in equal share
the defaulter

3) not supposed to bear the loss

4) the contract becomes void to that extent

Explanation:

Q233)
When the unpaid seller has parted with the goods to a carrier and the buyer has become Marks : 1.0
insolvent he can exercise ------------------ Id: 45292
1) right of lien. 2) right of stoppage in transit.
3) right of resale. 4) none of the above.

Explanation:
Q234) Two persons have the capacity to contract under section 11 Marks : 1.0
Id: 45371

1) if both are major 2) if both are not of unsound mind

3) if none is declared unqualified to contract 4) all are correct

Explanation:
Q235) If a transfer of title in goods from one person to the other is brought about under Marks : 1.0
Id: 45460
statutory compulsion, it will, within the meaning of the Sale of Goods Act, 1930
1) be no sale at all 2) always be a sale

3) depend on the facts of each case and terms of 4) only (b) and not (a) or
(c) the particular statute regulating the dealings whether there can be
contract of sale

Explanation:

Q236) Unless otherwise agreed, where goods are sent by seller to the buyer by a route Marks : 1.0
involving sea transit, the seller Id: 45455
1) must inform the buyer in time to get the goods 2) may insure the goods
insured

3) must insure the goods

4) need not inform the buyer

Explanation:
Q237) Seller means a person Marks : 1.0
Id: 45435

1) who sells or agrees to sell goods 2) who only sells good

3) who only agrees to sell goods 4) none of above

Explanation:

Q238) The Sale of Goods Act, 1930 came into force on Marks : 1.0
Id: 45394

1) 1st April, 1930 2) 1st July, 1930

3) 1st December, 1930 4) 31st January, 1931.

Explanation:
Q239) Every promise and every set of promises, forming the consideration for each other, Marks : 1.0 is an Id: 45294

1) agreement 2) contract

3) offer 4) acceptance

Explanation:

Q240) The offer must be... Marks : 1.0

Id: 45507

1) definite 2) incomplete

3) non legal 4) theoratical

Explanation:
Q241) A contract with or by a minor is a Marks : 1.0
Id: 45316

1) valid contract 2) void contract

3) voidable contract 4) voidable at the option of either party

Explanation:
Q242) Law of contract is – Marks : 1.0
Id: 45334

1) Not the whole law of agreements nor it is the 2) The whole law of agreements
whole law of obligations

3) The whole law of obligations

4) None of the above

Explanation:

Marks : 1.0
Q243) Consent is free under section 14 if not caused by Id: 45339
1) coercion& undue influence 2) fraud and misrepresentation
3) mistake subject to the provisions of sections 4) all the above
20, 21 and 22

Explanation:

Q244) An agreement enforceable by law at the instance of one party & not of other party Marks : 1.0 under section 2(i) is called Id: 45304

1) a valid contract 2) an illegal contract

3) void contract 4) a voidable contract

Explanation:
Q245) If the time of performance of the contract is the essence of the contract and the Marks : 1.0
promisor fails to perform the contract by the specified time Id: 45388

1) the contract becomes void 2) ) the contract remains valid

3) the contract becomes voidable at the instance 4) the contract becomes unenforceable
of the promisee

Explanation:

Q246) The duty of fixing value for the goods, under section 10 of the Sale of Goods Act, Marks : 1.0
1930 Id: 45485
1) can be delegated by the valuer 2) can be delegated by the valuer with the
consent of the buyer

3) cannot be delegated by the valuer 4) can be delegated by the valuer with the leave
of the court

Explanation:
Q247) In a contract of sell, unless goods are ascertained, there is Marks : 1.0
Id: 45427
1) a sell 2) a agreement to sell

4) an unenforceable agreement
3) a void agreement

Explanation:
Q248) Marks : 1.0
If a price is not determined by the parties in a contract of sale, the buyer is bound to pay Id: 45401

1) the price demanded by the seller 2) a reasonable price

3) price which buyer thinks is reasonable 4) price determined by independent third party.

Explanation:

Q249) A stipulation in a contract of sale of goods whose violation by seller gives a right of Marks : 1.0 rescission to buyer, is called
------------------ Id: 38807
1) Gurranty. 2) Warranty.

3) Condition. 4) Term.
Explanation:
Q250) Communication of a proposal is complete Marks : 1.0
Id: 45311

1) when it is put in the course of transmission 2) when it comes to the knowledge of the person
to whom it is made

3) when the proposal is communicated to the 4) all the above person to

whom it is made

Explanation:

Marks : 1.0
Q251) Two persons have the capacity to contract under contract act Id: 45497
1) if both are major 2) if both are of of unsound mind

3) if both are declared unqualified to contract 4) when both are minor

Explanation:
Q252) An agreement is a voidable contract when it is- Marks : 1.0
Id: 45342
1) Enforceable if certain conditions are fulfilled 2) Enforceable by law at the option of the aggrieved party
3) Enforceable by both the parties 4) Not enforceable at all

Explanation:

Q253) Which of the following is essential to constitute a valid offer. Marks : 1.0
Id: 45518

1) The offer must be made with a view to obtain 2) The offer must be made with the intention of
acceptance. creating legal relations.

3) The terms of the offer must not be loose, 4) All of the above
vague or ambiguous.

Explanation:
 Marks : 1.0
Q254) A promisee can accept the performance Id: 45377
1) from the promisor himself 2) from the representative of the promisor
competent to perform

3) from a third person 4) all the above

Explanation:
Q255) The person who gives the guarantee is called ………… Marks : 1.0
Id: 45519

1) Principal debtor 2) Surety

3) Creditor 4) Buyer

Explanation:
 Marks : 1.0
Q256) Risk follows ownership Id: 45422
1) only when goods have been delivered 2) only when price has been paid

3) whether delivery has been made or not 4) even when price has not been paid
Explanation:

Q257) Valid contracts Marks : 1.0

Id: 45509

1) are made by free consent. 2) are made by competent parties.

3) have lawful consideration and lawful object. 4) all of the above

Explanation:
Q258) When the consent to an agreement is obtained by undue influence, the agreement is
voidable at the option of
1) either of the parties to the agreement 2) a party whose consent is obtained

Marks : 1.0
3) a party who obtained the consent 4) none of the above Id: 45348
Explanation:
Q259) Under section 9 of the Sale of Goods Act, 1930, what is a reasonable price is Marks : 1.0
Id: 45482

1) a question of fact 2) a question of law

3) a mixed question of fact and law 4) only (c) and not (a) or (b)

Explanation:

Q260) A seller of goods is called Unpaid Seller when … Marks : 1.0

Id: 45545
1) The seller has not received 50% of price of 2) The whole of the price has not been paid or
goods tendered
3) Negotiable Instrument received as payment 4) Both (b) & (c)
has been dishonored

Explanation:

Marks : 1.0
Q261) Under section 2(c) promisor is the Id: 45307
1) person who makes the proposal 2) person who accepts the proposal

3) person who makes the promise 4) person to whom the proposal is made
Explanation:
Q262) In cases of joint promise generally a promisee can compel Marks : 1.0
Id: 45379

1) all the joint promisors to perform 2) any one of them to perform

3) some of them to perform 4) all the above

Explanation:

Marks : 1.0
Q263) Section 8 of the Sale of Goods Act, 1930, in its application is Id: 45472
1) confined to agreement to sell 2) confined to contract of sale

3) neither (a) nor (b) 4) only (b) and not (a)

Explanation:
Q264) In case of breach of a warranty, the buyer can Marks : 1.0
Id: 45412
1) repudiate the contract 2) claim damages only

3) return the goods 4) refuse to pay the price

Explanation:
Q265) A proposes, by letter, to sell a house to B for Rs. 10,00,000. The communication of Marks : 1.0 the proposal is complete Id: 45511

1) when B receives the letter. 2) when A dispatches the letter.

3) when A signs the letter. 4) when B knows about the letter.

Explanation:

Q266) Where a breach of contract occurs the innocent party can usually choose whether or Marks : 1.0 not to terminate the contract.
Id: 45494

1) Fully True 2) Fully False

3) Partially True 4) Partially False

Explanation:
Q267) What does “nemo dat quod non habet “ mean ? Marks : 1.0
Id: 45504
1) No one can give what he doesn't have 2) Not completing the contract

3) No one can transfer a greater right than he 4) No one shall be a judge in his own case
himself has

Explanation:

Marks : 1.0
Q268) An Executory Consideration is - Id: 45351
1) Consideration promised by executive of a 2) Consideration which consists simply of a
Company mutual exchange of promise each being a
consideration for the other
3) Consideration which should be executed on 4) Consideration which should be executed
the future date before the Court

Explanation:
Q269) When, at the desire of the promisor, the promisee or any other person has done or Marks : 1.0 abstained from doing or, does or abstain
from doing or promises to do or to abstain Id: 45301 from doing something, such act or abstinence or promise under section 2(d) is
called
1) reciprocal promise 2) consideration for the promise

3) counter offer 4) acceptance

Explanation:
Q270) The doctrine of caveat emptor applies, Marks : 1.0
Id: 45402

1) in case of implied condition & warranties 2) where buyer does not intimates the purpose &
depends on his own skill &judgement

3) goods are sold by sample 4) goods are sold by description

Explanation:

Q271) Under section 8 of the Sale of Goods Act, 1930 a contract for sale of goods can be Marks : 1.0
avoided where Id: 45476
1) the goods have perished/damaged due to 2) the goods have perished/damaged due to
the fault of the buyer the fault of the seller
3) the goods have perished/damaged due to 4) the goods have perished/damaged due to
the fault of either the buyer or the seller the fault neither of the buyer/nor the seller
Explanation:

Q272) Contract is defined as an agreement enforceable by law, vide Marks : 1.0

section______________of Indian contract Act Id: 45563

1) 2(e) 2) 2(f)

3) 2(h) 4) 2(i)

Explanation:

Q273) Consideration should be something in return of promise which Marks : 1.0

Id: 45336
1) both the law and parties regard, 2) only law regards a having
as having some value some value

3) only the parties regard some

value
4) only adequate value necessary

Explanation:

Marks :
1.0 Id:
Q274) The liability of a surety is:- 38805
1) More than that of the principal 2) less than that of the
debtor principal debtor
3) same as that of the principal 4) dependent on the court's
debtor descretion
Explanation:
Q275) A contract which can be repudiated at the option of one party only is Marks : 1.0
Id: 45573

1) void contract 2) unenforceable agreement

3) illegal agreement 4) voidable contract

Explanation:
Q276) If a contract for sale of goods is for sale of two or more things under an entire
Marks : 1.0 contract, the perishing of some of them would Id: 45480

1) avoid the whole contract 2) not avoid the contract at all

3) avoid the contract so far as it relates to the 4) either (b) or (c).

goods perished and not the whole contract

Explanation:

Q277) In the Sale of Goods Act, 1930, the term 'goods' does not include Marks : 1.0
Id: 45549

1) Stock and share 2) Growing crops

3) Grass 4) None of the above

Explanation:

Q278) A contract with minor is Marks : 1.0

Id: 45372
1) voidable at the instance of the minor 2) voidable at the instance of
other party

3) void 4) valid
Explanation:

Q279) In a sale, if goods are destroyed, loss falls on Marks : 1.0

Id: 45399
1) buyer 2) seller

4) seller, if price not

3) partly on buyer & partly on seller paid.
Explanation:
Q280) The prima facie evidence of a reasonable price within the meaning of section 9
of the
Sale of Goods Act, 1930 is
1) the current price 2) the market price

4) the average of the highest and

3) the one which the court fixes the lowest price in a period of
one year
Explanation:

Q281) A contract of sale of goods, on goods having been damaged/perished subsequent

 to Marks : 1.0 the formation of the contract under section 8 of the Sale of
Goods Act, 1930, can be Id: 45477 avoided
1) before the property in goods has passed to the 2) after
the property in goods has passed to the buyer buyer

3) at any time irrespective of

whether the 4) only (b) not (a)
or (c) property in goods has
passed to the buyer or not

Explanation:

Q282) Assignment by operation of law takes place Marks : 1.0

Id: 45353

1) by the mutual consent of the parties 2) by the will of either

party

3) when the subject matter of a contract ceases

4) by the death of a party to a contract to exist

Explanation:
Q283) Quality of goods' under section 2(12) of the Sale of Goods Act, 1930 has a
reference Marks : 1.0
Id: 45431

1) fitness for a particular purpose 2) state or condition

3) description 4) either (a) or (b) or (c)

Explanation:

Q284) The main object of a contract of sale is Marks : 1.0

Id: 45415

1) ) transferof possession of goods 2) transfer of property in

goods

3) delieveryof goods 4) payment of price

Explanation:
Q285) An agreement to remain unmarried is Marks : 1.0
Id: 45358

1) valid 2) voidable

3) void 4) unenforceable

Explanation:
Q286) A person subsequently accepts the act of the agent done without his consent
is Marks : 1.0
Id: 45539

1) Ratification 2) agency by estoppels

3) Revocation 4) Both a & c

Explanation:
Q287) Which one of the following statements is incorrect? Marks : 1.0
Id: 45495

1) Where parties want to modify the terms of the 2)

Where consideration is provided in return for previous
contract without making substantial one party's
agreement to change, the changes there is no
requirement of writing. agreement is called 'accord'.

3) If the parties intend to abandon the original

4) If the parties intend to abandon the original contract and

make a fresh agreement the new contract completely an
oral agreement is not one must be evidenced in writing.
always sufficient.

Explanation:
Q288) A lends Rs.500 to B. He later tells B that he need not repay the amount, the
contract Marks : 1.0 is discharged by Id: 45524

1) breach 2) waiver

3) novation 4) performance

Explanation:
 MULTIPLE CHOICE QUESTIONS

1. Indian Contract Act extends to the whole of India excepts to the state of?
a. Assam
b. Jammu & Kashmir
c. West Bengal
d. None of these
Ans: B

2. An agreement enforceable by law is called?

a. Void
b. Promise
c. Contract
d. All of these
Ans: C

3. Chapter I of the Indian Contract Act deals the ______ of proposals?

a. Communication
b. Revocation
c. Acceptance
d. All of these
Ans : D

4. In order to convert a proposal into a promise the acceptance must...?

a. Absolute
b. Unqualified
c. Absolute & Unqualified
d. None of these
Ans: C
5. Agreement means ________________.
a. Offer + acceptance
b. Offer + contract
c. Contract + acceptance
d. Enforceable by law
Ans:A

6. The two contracting parties must agree as regards the subject-matter of the
contract at the same time & in the same sense is called as __________.
a. personam
b. consensus-ad-idem
c. reciprocal promise
d. accepted proposal
Ans: B

7. Technical term of void contract is _________.

a. voidable contract
b. void-ab-initio
c. personam
d. void agreement
Ans: B

8. Communication of a proposal is complete when it comes to the knowledge of the person to

whom it s made.
a. True
b. Partly True
c. False
d. None of these
Ans: A
9. Incase of breach of contract of sale of some rarea article or thing for which there is no substitue
available in the market the court may grant-
a.Quantum Meruit
b.Rescission
c.Specific Performance
d. Injunction
Ans: C

10. _______ is one the object of which is unlawful.

a. Void contract
b. Wager
c. An illegal agreement
d. Voidable contract
Ans: C

11. A proposal, when accepted becomes a ________.

a. promise
b. contract
c. offer
d. consensus
Ans: A

12. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C
13. The obligation of both the parties to the contract are pending at the time of
formation of the contract is called as ____________.
a. wagering contract
b. bilateral contract
c. illegal contract
d. unenforceable contract
Ans: B

14. Promises which form the consideration or part of the consideration for each other is
called as __________.
a. reciprocal promise
b. reciprocal offer
c. reciprocal performance
d. consideration
Ans:A

15. If any parties to the contract refuses or fails to perform his part of the contract or by
his act makes it impossible to perform his obligation under the contract, it is called
as _________.
a. breach of contract
b. void contract
c. tender
d. novation
Ans:A

16. A Quasi- contract under Indian Contract Act

a. Is an agreement
b. Is a contract
c. Has on a legal obligation
d. None of these
Ans: C
17. A contingent contract dependent on the non happening of specified uncertain event within
fixed time can be enforced if the event __
a. Does not happen within a fixed time
b. Becomes impossible before the expiry of the fixed time
c. Happens within a fixed time
d. Both (a) & (b)
Ans: D

18. An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Ans:A

19. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B

20. Substitution of a new contract for the original contract is called as ______.
a. novation
b. rescission
c. alteration
d. remission
Ans:A
 21. The term ________ is defined as a legal tie which imposes upon a definite person
or persons the necessity of doing or abstaining from doing a definite act or acts.
a. agreement
b. champerty
c. obligation
d. promise
Ans:C

22. ‘A’ contracts to pay Rs. 10,000 for purchasing B’s house and if B’s house is burnt;
This is a ________.
a. wagering contract
b. contingent contract
c. executors contract
d. quasi contract
Ans:B

23. The court order to restrain a person not to do a particular activity is called as
________.
a. quantum meruit
b. specific performance
c. injuction
d. novation
Ans:C

24. Coercion involves the usage of _________.

a. fraud
b. misrepresentation
c. undue influence
d. all the above
Ans:D
 25. A contract which arises on the basis of coercion is called as _________.
a. void contract
b. voidable contract
c. illegal contract
a. lawful contract
Ans:A

26. A contingent contract is ____________ contract.

a. Void
b. Voidable
c. Valid
d. Illegal
Ans:C

27. Damages which may reasonably be supposed to have been in the contemplation of
both parties as he probable result of the breach of a contract is known as ________.
a. ordinary damages
b. special damages
c. vindictive damages
d. nominal damages
Ans:B

28. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
 29.Vindictive Damages have been awarded-
a. for a breach of promise to marry
b. for a wrongful dishonour of a cheque by banker processing adequate funds of the customer
c. Either (1) OR (2)
d. Both (1) and (2)

30. An Executary Consideration is-

a. Consideration promised by an executive of a company
b. consideration which consists simply of a mutual exchange of promise each being the consideration
for the other.
c. consideration which should be executed on a future date
d. consideration which should be executed before the court
Ans: C

31. When a person signifies to another his willingness to do or to abstain from doing anything with
a view to obtaining the assent of that other to such act or abstinence-
he is said to-
a. enter into a contract
b. make a proposal
c.accept an offer
d. create legal obligation
Ans: B

32. An agreeement to agree in future is

a. valid
b. voidable
c. invalid.
d. illegal
Ans: C
 33. An agreement entered into with free consent and lawful but inadequate consideration is--
a. valid
b. voidable
c. invalid.
d. illegal
Ans: A

34. A minor's estate is liable for the ______ supplied to him

a. Luxuries
b. Necessities
c. Necessaries
d. All of these
Ans: C

35.The aggrieved party in breach of contract has not suffered any loss by reason of the
breach of contract, the damages recoverable by him is ________.
a. payment of interest
b. ordinary damages
c. special damages
d. nominal damages
Ans:D

36. If time is the essence of a contract and the promisor fails to perform the contract by the specified
time, the contract:
a. remains valid
b. becomes void
c. becomes unorceable
d. becomes voidable at the instance of the promise
Ans: D
 37. __________ damages are measured on the basis of extent of shock to the sentiments of the
promisee
a. Vindictive
b. Nominal
c. Loss of reputation
d. Discomfort
Ans: A

38. There are _________ ways for actual breach of contract.

a. 1
b. 2
c. 3
d. 4
Answer:B

39. The technical term “Quantum Meruit” denotes ____________.

a. performance of a contract
b. quantity involved in contract
c. suit for specific performance
d. as much as earned
Answer:D

40. Law of quasi-contract is also known as ________.

a. Law of returns
b. Law of restitution
c. Law of repudiation
d. Law of contract
Ans: B
 41. The contract of General Insurance is--
a. Contingent
b. Voidable
c. Valid
d. None of these
Ans: A

42. ___________ means intentional relinquishment of a right under the contract

a. waiver
b. wager
c. alteration
d. rescission
Ans:A

43. Termination of contractual relations between the parties to a contract is called as………..
a. performance of contract
b. discharge of contract
c. winding up of contract
d. none of the above
Ans:B

44. ____________ means passing over rights and liabilities from one person to another
person.
a. Devolution
b. Endorsement
c. Passing the buck
d. Escapism
Ans:A
 45.An advantage or benefit, moving from one party to the other is called as ________.
a. lawful consideration
b. lawful object
c. free consent
d. illegal consideration
Answer:A

46. Responsibility of finder of goods under contract is __________.

a. indemnifier
b. bailee
c. owner
d. despatcher
Ans:B

47. A person who finds goods belonging to another and takes them into his custody, is
subject to the same responsibility as a ________________.
a. bailee.
b. true owner .
c. thief.
d. agent.
Ans:A

48. A finder of lost goods is a _____________.

a. bailer.
b. bailee.
c. true owner.
d. thief.
Ans:B
 49. A bailee has___________.
a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A

50. The position of finder of lost goods is that of a ___________.

a.Bailer .
b.Bailee.
c.Surety.
d.Principal debtor.
Ans: B

51. A gratuitous bailee is liable for defects in the goods bailed __________.
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases.
d. in particular case.
Ans:B

52.A gratuitous bailment is one which is _____________.

a. supported by consideration
b. not Supported by consideration
c. not enforced by law
d. void
Ans:B
 53. According to Sale of Goods Act, 1930, “Seller” means a person
a. Who only agrees to sell the goods
b. Who only sells the goods
c. Who sells or agrees to sell the goods
d. None of these
Ans: C

54. A bailee has___________.

a. a right of particular lien over the good bailed.
b. a right of general lien.
c. a right of both particular and general lien.
d. no lien at all over the goods bailed.
Ans:A

55. In sale, if the goods are destroyed, the loss falls on _____________.
a. the buyer.
b. the seller.
c. partly on the buyer and partly on the seller.
d. third party.
Ans:A

56. If sale is by sample as well as by description, the implied condition is that the goods
shall correspond with ____________.
a. sample.
b. description.
c. both sample and description.
d. either sample or description.
Ans:C
 57. In a sale, there is an implied condition on the part of seller that he __________.
a. has right to sell the goods.
b. is in position of the goods.
c. will have the right sell.
d. will not have the right to resell.
Ans:A

58. A condition is a stipulation which is____________.

a. essential to the main purpose of contract of sale.
b. not essential to the main purpose of the contract of sale.
c. collateral to the main purpose of contract of sale.
d. additional security.
Ans:A

59. ' Contract of Sale' under Sale of Goods Act, 1930, comprises of contracts which are,
a. Executory
b. Concluded
c. Both executory and executed
d None of these
Ans: C
60. In a contract of sale of goods the implied condition of wholesomeness applies to---
a. Medicines
b. Eatables
c. Cloth
d. Computers
Ans: B

61. The consideration in a contract of Sale is called--

a. Price
b. Exchange Money
c. Barter Money
d. Rewards
Ans:A
 62. When a breach of condition is treated as a breach of warranty, the buyer cac--
a. Repudiate the contract
b. Reject the goods
c. Claim damages
d. None of these
Ams: C

63. The main objective of a contract of sale is ______________.

a. transfer of possessing of goods.
b.transfer of property in goods from seller to buyer.
c. delivery of goods.
d. payment of price.
Ans:B

64. When there is a contract for the sale of unascertained goods, the property in
goods___________.
a. passes when the buyer pays the price.
b. does not pass until the goods are ascertained.
c. when the contract is entered into.
d. when the buyer accepts the goods.
Ans:B

65. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
a. accept the whole.
b. reject the whole.
c. accept the goods ordered for and can return the excess quantity.
d. either a or c
Ans:D
 66. The lien of an unpaid seller depends on _____________.
a. possession.
b. title.
c. ownership.
d. possession and ownership.
Ans:A

67. An unpaid seller can excises the right of stoppage in transit when the carrier holds the
goods ____________.
a. as sellers agent.
b. as buyer s agent.
c. as agent of both of them.
d. in his own name.
Ans:D

68. The sale of goods act, 1930 deals with _________.

a. movable goods only.
b. immovable goods only.
c. both movable and immovable goods.
d. all goods except ornaments.
Ans:A

69. The term, ‘goods’ for the purpose of sale of goods act does not include _________.
a. money.
b. actionable claims.
c. immovable property.
d. all the above.
Ans:B
70.A contract for the sale of ‘furniture goods’ is_____________.
a. sale.
b. agreement to sell.
c. void.
d. voidable.
Ans:B

71. ___________ gives the buyer only a right to claim damages.

a. Condition.
b. Guarantee.
c. Warranty.
d. Indemnity.
Ans:C

72. Which of the following is not an implied condition in a contract of sale _________.
a. condition as to title.
b. condition as to description.
c. condition as to freedom from the encumbrance.
d. condition as to a sample.
Ans:C

73. A contract of sale may be __________.

a. absolute only.
b. condition only.
c. absolute and conditional.
d. indemnity.
Ans:C

74. S and P gets into a shop. S says to the shopkeeper C “let P have the goods, and if he
does not pay you, I will”. “This is a __________.
a.contract of guarantee.
b.contract of indemnity.
c.wagering contract.
d.quasi-contract.
Ans:A

75. A bailment is usually created by agreement between ______________.

a. the principal & the agent.
b. the contracted parties.
c. the bailer & the bailee.
d. the guaranteed & parties.
Ans: C.

76. The gratuitous bailer is liable to bailee for the defects in the goods bailed…………
a. even if he is not aware of them.
b. only if he is aware of them.
c. in all cases of loss.
d. in certain case of loss.
Ans:B

77.The term 'property' as used in the Sale of Goods Act, 1930 means_____________
a. possession.
b. ownership.
c. both ownership and possession.
d. the subject matter of contract of sale.
Ans:B

78.The term “contract to sale” is a generic term which includes both __________ .
a. sale & an agreement to sell.
b. contract & agreement.
c. possession & Ownership of goods.
d. transfer to ownership & possession.
Ans: A

79. _________ form the subject of a contract of sale.

a. Assets.
b. Consideration
c. Goods.
d. Agreement to sell.
Ans: C

80. There is a constructive delivery of goods_____________.

a. When the seller hands over to the buyer the key of the warehouse where the goods are
lying.
b. When a third person in possession of the goods acknowledged to the buyer that he
holds them on his behalf.
c. When the seller physically delivers the goods to the buyers.
d. When the seller asks the buyer to take delivery of the goods.
Ans:B

81.Where there is no specific agreement as to place, the goods sold are to be delivered
at the place______________.
a. at which they are at the time of sale.
b. of the buyer.
c. desired by the buyer.
d. to be determined by the seller.
Ans:A

82. An implied warranty or condition as to quality or fitness for a particular purpose may
be annexed by the usage of ________.
a. trade.
b. goods.
c. commerce.
d. agreement to sell.
Ans: A

83. __________ is an illicit act dissuading the intending purchase r from bidding.
a. Withholding the goods.
b. Damping.
c. Knockout.
d. Repudiation.
Ans: B

84. Where there is an unconditional contract for the sale of specific goods in a
deliverable state, the property in the goods passes to the buyer when ______________.
a. the goods are delivered to the buyer.
b. the price is paid by the buyer.
c. the contract is made.
d. the buyer accepts the good.
Ans:C

85. ___________ is a contract in which the terms are started in words (Written or
Spoken) by the parties.
a. Express contract.
b. Implied contract.
c. Executed contract.
d. Executory contract.
Ans: A

86. The doctrine of caveat emptor applies______________

a.in case of implied conditions and warranties.
b.when the buyer does not intimate the purpose to the seller and depends upon his own
skill and judgment.
c.when goods are sold by sample.
d.when goods are sold by description.
Ans:A

87. “A” who purchases certain goods from B by a misrepresentation and pledges them
with “C”. The pledge is _____________.
a. valid.
b. void.
c. voidable.
d. invalid.
Ans:B

88. In a hire – purchase agreement, the hirer ____________.

a. has an option to buy the goods.
b. must but the goods.
c. must return the goods.
d. is not given the possession of the goods.
Ans:A

89. ____________ means competency of the parties to enter into a valid contract.
a. Solvency.
b. Capacity.
c. Consequences.
d. Position.
Ans: B

90. The measure of damages in case of breach of a contract is the difference between the…….
a. contract price and the market price at the date of breach.
b. contract price and the maximum market price during the terms of contract.
c. contract price and the price at which the plaintiff might have sold the goods.
d. contract price and the price fixed by the court.
Ans:A

91. Technical term of contract without consideration is called as ________ .

a. nadum pactum.
b. void – ad-initio.
c. consensus –ad-idem
d. caveat emptor.
Ans: A
 92. Mr. A, a tradesman, leaves goods at Mr. B’s house by mistake. Mr. B treats the goods
as his own. He is bound to pay for Mr.A. This is an example for obligation to pay for……..
a. non-gratuitous act
b. gratuitous act
c. coercion
d. quantum meruit
Ans:A

93. Where the buyer wrongfully refuses to aceept the goods, the seller may recover the damages
a. for the reasonable charges for the care and the custody of goods
b. for the loss caused by the non accepatnce of goods
c. either (a) OR (b)
d. both (a) AND (b)
Ans: D

94. Under the Sale of Goods Act 1930, the existing goods are classified as
a. Specified Goods
b. Ascertained Goods
c. Unascertained Goods
d. All of the above
Ans: D

95. Following is not a document of title

a. railway receipt
b. bill of lading
c. dock of warrant
d. None of these
Ans: D
 96. When the terms of the contract of sale of goods are such that by reserving the right of disposal,
the seller commits a breach of contract, and the goods appropriated to the contract does not cause the
property in goods to pass to the buyer. It is--
a. Partly True
b. True
c. False
d. None of these
Ans: B

97. When the seller exercises right of lien or right of stoppage of goods in transit and gives notice
to the buyer for payment and the buyer does not pay or tender within reasonable time , an unpaid seller
can--
a. re-sale the goods
b. cannot re-sale the goods
c. ask again to the buyer
d. take possesion and mark the good as bad
Ans: A

98. Ignorance of law is _____________.

a. an excuse
b. not an excuse
c. punishment
d. offence
Ans:B

99. ‘A’ permits a coolie to put his luggage to a carriage. The contract comes into
existence as soon as the coolie puts the luggage. So ‘A’ has only to fulfill his part.
This is an example for __________.
a. unilateral contract
b. bilateral contract
c. implied contract
d. executed contract
Ans:A
 100. “A person should not be allowed to enrich himself unjustly at the expense of
another” is the principle of ____________.
a. contingent contract
b. wagering contract
c. quasi contract
d. void contract
Ans:C
 111 GE-UL- LEGAL ASPECTS OF BUSINESS
1) Law of contract is—
a) Not the whole of agreements nor is it the whole law of obligations
b) The whole law of agreements
c) The whole Law of obligations
d) None of the above.

2) A contract creates
a) Rights in personam
b) Rights in rem,
c) Only rights and no obligations,
d) Only obligations and no rights.

3) An agreement is a voidable contract when it is –

a) Enforceable if certain conditions are fulfilled.
b) Enforceable bylaw at the option of the aggrieved party.
c) Enforceable by both parties d)not enforceable at all.

4) An agreement not enforceable by law is said to be

a) Void,
b) Voidable,

c) Valid,
d) Unenforceable,

5) A contract
a) May be void as originally entered into
b) May become void subsequent to its formation
c) Cannot become void under any circumstances

d) May become void at the will of party.

6) The transactions collateral to an illegal agreement are

a) Not affected in any manner,
b) Also tainted with illegality

By Prof Mayuree Tawade Page 1

c) Voidable at the option of the plaintiff
d) Void

7) A contract is

a) A legal obligation

b) An agreement plus a legal obligation

c) Consensus ad idem,

d) Agreement plus a legal object.

8) Flaw in capacity to contract may arise from –

a) Lack of free consent

b) Lack of consideration

c) Minority

d) Absence of legal formalities.

9) Which of following result in an offer)

a) Declaration of intention

b) An invitation to offer,

c) An advertisement offering reward to anyone who finds lost dog of the advertise,

d) An offer made in a joke.

10) A specific offer can be accepted by

a) Any person

b) Any friend of offerer

c) The person to whom it is made

d) Any friend of offeree.

11) A letter of acceptance sufficiently stamped and duly addressed is put into course of
transmission. There is

a) A contract voidable at the option of acceptor

b) A contract voidable at the option of offerer,

c) No contract at all,

By Prof Mayuree Tawade Page 2

d) A valid contract

12) Acceptance may be revoked by the acceptor

a) At any time
b) Before the letter of acceptance reaches the offerer
c) After the letter of acceptance reaches the offeree
d) Before the death of the acceptor.

13) An advertisement to sell a thing by auction is

a) An offer
b) An invitation to offer
c) No offer at all
d) A contract

14) On the face of the ticket for a journey the words ―for conditions see back‖ are
printed in small print .The passenger –
a) Is bound by the conditions whether he takes care to read them or not.
b) Is not bound by the conditions
c) May not take note of the conditions

d) None of the above.

15) An offer is made to Mani in crowd it –

a) Can be accepted by him alone,
b) May be accepted by any person who hears it.
c) May be accepted by his brother
d) May be accepted by his friends.

16) An acceptance is not according to the mode prescribed but the offerer decides to
keep quiet. In such a case there is –
a) A contract,
b) No contract,
c) Avoidable contract,

d) An unenforceable contract.

17) There is a counter-offer when a

a) The offeree gives conditions for acceptance or introduces a fresh term in acceptance

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b) The offerer makes a fresh offer
c) The offeree makes some query
d) The offeree accepts it.

18) A makes an offer to B on 10th by a letter which reaches B on 12th B posts letter of
acceptance on 14th which reaches A on 16th. The communication of acceptance is
complete as against A on –
a) 12th
b) 14th
c) 16th
d) 10th

19) Consideration must move at the desire of –

a) The promisor,
b) The promisee,
c) Promisor or any other third party,
d) Both the promisor and the promisee.

20) Consideration –
a) Must move from the promisee,
b) May move from the promisee or any other person

c) May move from the third party

d) May move from the promisor.

21) Consideration-
a) Must be adequate to the promise made,
b) Need not be adequate to the promise made
c) Must be of reasonable value

d) Must be of more value than the value of promise made.

22) Consideration must be something which the promisor –

a) Is already bound to do,
b) Is not already bound to do.
c) May voluntarily do
d) Must not do.

By Prof Mayuree Tawade Page 4

23) Compromise of dispute claims –
a) Is a good consideration for a contract.
b) Is not a good consideration for a contract.
c) Results in a void agreement

d) Is not permitted by law.

24) A promise to compensate, wholly or in part , a person who has already voluntarily
done something for the promisor is
a) Enforceable

b) Not enforceable because it is without consideration,

c) Void
d) Voidable.

25) A person who is not party to a contract

a) Cannot sue,
b) Can sue,

c) Can sue only in well recognized cases

d) None of these.

26) Consideration in a contract –

a) May be past, present or future,
b) May be present or future only.
c) Must be present only.

d) Must be future only.

27) An agreement made without consideration is

a) Valid,
b) Illegal,
c) Voidable

d) Void

28) A promise to subscribe to a charity .The promise is a

a) Valid contract,
b) Voidable contract,
c) Void agreement

By Prof Mayuree Tawade Page 5

d) Void contract.

29) An agreement with or by minor is –

a) Void
b) Voidable at the option of the minor

c) Voidable at the option of the other party

d) Valid.

30) On attaining the age of majority a minor‘s agreement –

a) Can be ratified by him
b) Cannot be ratified by him
c) Becomes void

d) becomes valid.
31) A minor, by misrepresenting his age, borrows some money –
a) He can be sued for the fraud,
b) He cannot be sued for the fraud
c) He is liable to return the money
d) None of the above.

32) A minor enters into a contract for the purchase of certain necessaries, in such case –
a) He is not personally liable to pay
b) He is liable to pay
c) His estate is liable to pay
d) His guardian is liable to pay.

33) A person is usually of sound mind, but occasionally of sound mind –

a) He may enter in to a contract when he is of sound mind,
b) He may not make a contract even when he is of sound mind
c) He cannot enter into a contract at all.
d) None of the above.

34) A contract by an idot is –

a) Voidable
b) Enforceable

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c) Invalid
d) Void ab inito

35) Contracts made before war with an alien enemy which are against public policy are
a) Suspended and are revived after the war is over.

b) Dissolved
c) Not affected at all
d) Void ab initio

36) The contractual capacity of a company is regulated by –

a) Its memorandum of association and the provisions of the companies act, 1956
b) The terms of contract entered into with a third party
c) Its articles of association
d) Its prospectus.

37) The case of Mohiri Bibi v. Dharmodas Ghose (1903) deals with
a) Communication of offer
b) Communication of acceptance

c) A minors agreements
d) Fraud

38) Flaw in a capacity to contract may arise from –

a) Want of consideration

b) Unsoundness of mind
c) Illegality of object

d) Uncertainty of object.

39) Where consent is caused by fraud or misrepresentation, the contract is –

a) Voidable at the option of the aggrieved party
b) Void
c) Unenforceable
d) Not affected in any manner.

By Prof Mayuree Tawade Page 7

40) Where both the parties to an agreement are under a mistake as a matter of fact
essential to the agreement, the agreement is –
a) Void
b) Voidable
c) illegal
d) Not affected at all.

41) Merely because a contract was caused by one of the parties to it being under a
mistake as to a matter of fact, it is not-
a) Voidable
b) Void
c) Affected at all
d) None of the above.

42) Consent given to a contract under some misrepresentation by the other party makes
the contract –
a) Void

b) Invalid
c) Unenforceable
d) Voidable

43) When a person positively asserts that a fact is true when his information does not
warrant it to be so, though he believes it to be true , there is –
a) Misrepresentation
b) Fraud
c) Undue influence
d) Coercion.

44) Fraud exists when it is shown that a false representation has been made
a) Knowingly
b) Unknowingly
c) Unintentionally
d) Recklessly, not caring whether it is true or false
45) a mere attempt to deceit by a party to a contract –

By Prof Mayuree Tawade Page 8

a) Is not fraud unless the other party is actually deceived
b) Is fraud whether the other party has been deceived or not
c) Amounts to misrepresentation
d) None of the above.

46) When consent to an agreement is obtained by undue influence, the agreement is a –

a) Contract voidable at the option of the party whose consent was so obtained
b) Void contract.
c) Valid contract
d) Void agreement.

47) Which of the following relationships raise presumption of undue influence?

a) Parent and child
b) Doctor and patient
d) Fiancé and fiancée
f) Creditor and debtor.

48) If there is error in cause, the contract is

a) Void

b) Voidable
c) Valid
d) illegal
49) There is error in consensus , the agreement is
a) Void
b) Voidable

c) Avoid
d) illegal

50) If there is a unilateral mistake as regards identity of a party caused by fraud of the
other party , the contract is –
a) Void,
b) Voidable,

By Prof Mayuree Tawade Page 9

c) Valid
d) illegal

51) If there is a fraudulent misrepresentation as to the contents of a document, the

contract is

a) Void,

b) Voidable,

c) Valid

d) illegal

52) If there is a fraudulent misrepresentation as to the character of a document, the

contract is –

a) Void,

b) Voidable,

c) Valid

d) illegal

53) The Case of Cundy v. Lindsay (1878)deals with –

a) Coercion

b) Undue influence

c) Mistake as to the nature of transaction

d) Mistake as regards identity

54) A promise made without the intention of performing it amounts to –

a) Innocent misrepresentation

b) Fraud

c) Negligent Misrepresentation

d) Wrongful misrepresentation

55) The unlawful detention of any property of a person to obtain his consent to a
contract amounts to –

a) Misrepresentation

b) Fraud

By Prof Mayuree Tawade Page 10

c) Undue influence

d) Coercion.

56) The collateral transactions to an illegal agreement are

a) Void,
b) Illegal,
c) Voidable,
d) Not affected at all

57) An agreement made with an alien enemy is

a) Unlawful on the ground of public policy
b) Unlawful because it becomes difficult to be performed
c) Valid,
d) Voidable.

58) A person enters into an agreement whereby he is bound to do something which is

against his public or professional duty. The agreement is –
a) Void on the ground of public policy
b) Valid,
c) Voidable
d) illegal

59) Regulation as to the opening and closing of business in a market are

a) Not unlawful even if they are in restraint of trade.
b) Unlawful because they are in restraint of trade.
c) Void
d) Not valid

60) An employee, by the terms of his service agreement , is prevented from accepting a
similar engagement after the termination of his service .The restraint –
a) Valid
b) Void
c) illegal
d) Unenforceable
61) The case of nordenfelt v. maxim nordenfelt gun co. (1904) deals with

By Prof Mayuree Tawade Page 11

a) Agreement in restraint of legal proceedings,
b) minor‘s agreements
c) Agreement in restraint of trade
d) Agreement in restraint of marriage.

62) A contract of life insurance is

a) A contract of indemnity
b) Not a contract of indemnity
c) A wagering agreement
d) A contingent agreement.
63) an agreement the meaning of which is not certain ,is

a) Void
b) Voidable
c) Valid
d) illegal

64) Which of the following are wagering agreements,-

a) a crossword competition the prizes of which depend upon correspondence of the
competitors solution with a previously prepared solution,
b) Picture puzzles ,
c) Share market transactions in which delivery of stocks and shares is intended to be given
and taken
d) A contract of insurance,

65) An agreement to do an impossible act is,

a) Void
b) Voidable

c) illegal
d) Enforceable under certain circumstances.

66) A wagering agreement is.

a) Forbidden by law,
b) Immoral,
c) Opposed to public policy

By Prof Mayuree Tawade Page 12

d) None of the above.

67) A contract of insurance is a –

a) Contract of guarantee
b) Contingent contract

c) Wagering agreement
d) Unilateral agreement.

68) Which of the following are contingent contracts?

a) Contract of insurance
b) Contract of guarantee,
c) Contracts for the sale of goods on credit

d) Wagering agreements
69) A contingent contract is –
a) Void
b) Voidable
c) Valid
d) illegal

70) A contract to pay B Rs. 10,000 if B s house is burnt – This is a

a) Wagering agreement
b) Void
c) Voidable agreement
d) Contingent contract

71) A agree to pay B Rs. 2000 if a certain ship does not return at Mumbai port within a
year .A’s promise can be enforced when the ship
a) Arrives Mumbai a damaged condition during the years
b) is lost during the year
c) Is sunk during the years

d) Arrives Mumbai in a good condition during the year.

72) Promises forming consideration for each other are known as,
a) Independent promises
b) Dependent promises

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c) Reciprocal promises.
d) Mutual promises

73) Each party is a promisor and a Promisee in case of –

a) Past consideration

b) Present consideration
c) Every contract
d) Reciprocal promises

74) When promisee refuses to accept performance from the promisor who offers to
perform, it is –
a) Attempted performance,
b) Vicarious performance,
c) Tender
d) Frustration of contract.

75) Sale of goods for cash is an example of –

a) Mutual and independent promises
b) Mutual and dependent promises
c) Mutual and concurrent promises
d) Conditional and dependent promises,.

76) When a party to a contract transfers his contractual rights to another, it is known as
a) Rescission of contract

b) Waiver of contract
c) Discharge of contract,
d) Assignment of contract.

77) Where the debtor does not expressly intimate or where the circumstances attending
on a payment do not indicate any intention, the creditor –
a) May apply it to any lawful debt due
b) May apply it even to a time barred debt.

78) When two or more persons have made a joint promise ,then unless a contrary
intention appears from the contract, all such persons must fulfil the promise –
a) Jointly
b) Severally
By Prof Mayuree Tawade Page 14
c) Jointly and severally
d) Jointly or severally

79) Assignment by operation of law takes place –

a) By the mutual consent of parties

b) By the will of either party

c) When the subject matter of a contract ceases to exist
d) By the death of a party to a contract.

80) A who owes Rs. 10000 to B dies leaving an estate of Rs. 6000. The legal
representation of A are –
a) Liable for Rs. 10000
b) Liable for Rs. 6000
c) Not liable at all
d) Liable for Rs. 3000.

81) Owing to a strike in the factory of A, he is not able to supply the goods to B as per
the terms of the agreement. The agreement in such a case

a) Is discharged

b) Is not discharged

c) Becomes void

d) is voidable at the option of A.

82) If a contract contains an undertaking to perform impossibility, the contract is –

a) Void ab initio

b) Void

c) Voidable at the option of the plaintiff

d) illegal

83) An agreement to do an act impossible in itself –

a) Is void,

b) Is voidable

c) Is void ab initio

d) Becomes void when impossibility is discovered

By Prof Mayuree Tawade Page 15

84) If a new contract is substituted in place of an existing contract, it is called –

a) Alteration

b) Rescission

c) Novation

d) Waiver,

e) Remission

85) The case of Taylor v. caldwell (1883)deals with

a) Discharge of contract by destruction of subject matter,

b) Anticipatory breach of contract

c) Discharge of contract by death of a party

d) Breach of contract.

86) A lends Rs. 500 to B. He later tells B that he need not repay the amount, the contract
is discharged by –

a) Breach

b) Waiver

c) Novation

d) Performance

87) A contract has become more difficult of performance due to some un-contemplated
events or delays .The contract –

a) Is discharged

b) Is not discharged

c) Becomes void

d) Becomes voidable.

88) Where a contract could not be performed because of the default by a third person
on whose work the promisor relied, it –

a) Is not discharged

b) Is discharged

c) Becomes void

By Prof Mayuree Tawade Page 16

d) Becomes voidable.

89) A creditor agrees with his debtor and a third party to accept that third party as his
debtor. The contract is discharged by, -

a) Performance

b) Alteration

c) Waiver

d) Remission

90) The case of Satyabrata Ghose v. Mugneeram Bangur & co. (1954) deals with

a) Agreement opposed to public policy

b) Supervening impossibility

c) Contract of guarantee

d) Agency

91) A undertakes to paint a picture of B .He dies before he paints the picture . The
contract –

a) Is discharged by death

b) Becomes voidable

c) Becomes voidable at the option of the legal representatives of A .

d) Will have to be performed by the legal representatives of A.

92) The court may grant rescission where the contract is

a) Voidable at the option of the plaintiff

b) Void

c) Unenforceable

d) illegal

93) The foundation of modern law of damages was laid down in, -

a) Tinn v. Hoffman

b) Taylor v. caldwell

c) Hadley v. Baxendale

d) Addis v. Gramophone

By Prof Mayuree Tawade Page 17

94) Specific performance may be ordered by the court when –

a) The contract is voidable

b) Damages are an adequate remedy

c) Damages are not an adequate remedy

d) The contract is uncertain.

95) The measure of damages in case of breach of a contract is the difference between the

a) Contract price and the market price at the date of breach

b) Contract price and the maximum market price during the term of the contract

c) Contract price and the price at which the plaintiff might have sold the goods ,

d) Contract price and the price fixed by court.

96) The case of Hadley v. Baxendale (1854) deals with

a) Anticipatory breach of contract.

b) Quantum of damages

c) Supervening impossibility

d) Quasi contract.

97) Anticipatory breach of a contract takes place –

a) During the performance of the contract

b) At the time when the performance is due.

c) Before the performance is due

d) At the time when the contract is entered into.

98) In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the
customer, the court may award----

a) Ordinary damages,

b) Nominal damages

c) Exemplary damages

d) Contemptuous damages.

By Prof Mayuree Tawade Page 18

99) Ordinary damages are damages which---

a) Arise in the usual course of things from the breach

b) Which are in the contemplation of the parties at the time when the contract is made

c) Are agreed in advance

d) Are given by way of punishment for breach of contract.

100) A agreed to sell 100 shares to B at Rs. 75 per share delivery to be given on the 1st
march , B refused to accept delivery on 1st march as price had gone down to Rs. 60 per
share .Subsequently A sold these shares at Rs.92 per share –

a) A cannot recover any damages from B

b) A will have to restore to BRs. 1700 i.e. the profit he made

c) A can recover damages to be determined by the President of the stock exchange.

101) Exemplary damages are –

a) Allowed in case of dishonour of a cheque by a banker having sufficient funds

b) The difference between the contract price and the market price

c) Allowed where in case of breach of a contract, the plaintiff has not suffered any loss.

d) None of these.

102) A quasi contract –

a) Is a contract

b) As an agreement

c) Creates only legal obligation

d) Is none of these

103) when an agreement is discovered to be void ,any person who has received any
advantage under such agreement

a) Is bound to restore it

b) Is not bound to restore it

c) Is not bound to return it .

d) May retain it

e) None of these

By Prof Mayuree Tawade Page 19

104) A minor has been supplied necessaries on credit

a) He is not liable

b) He is personally liable

c) His estate is liable

d) He is not personally liable

105) A person who finds good belonging to another and takes them into his custody, is
subject to the same responsibility as a

a) Bailee

b) True owner

c) Bailor

d) Pledge.

106) A finder of lost goods is a –

a) Bailor

b) Baile

c) True owner

d) Thief

107) Quantum meruit means –

a) A non-gratuitous promise

b) An implied promise

c) As much as earned

d) As much as is paid.

108) A contract of indemnity is a –

a) A contingent contract

b) Wagering contract

c) Quasi contract

d) Void contract

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109) The definition of a contract of indemnity as given in the Indian contract act,1872
includes

a) Express promises to indemnity

b) Implied promises to indemnity

c) Cases where loss arises from accidents and events not depending on the conduct of the
promisor or any other person

d) Cases where the loss is caused by the conduct of the promisor himself or by the conduct of
any person

110) S and P go into a shop; S says to the shopkeeper, let P have the goods and if he does
not pay you, I will. This is a –

a) Contract of guarantee

b) Contract of indemnity

c) Wagering agreement

d) Quasi contract

111) Any variance made without surety‘s consent in the terms of the contract between
the principal debtor and the creditor discharges the surety –

a) As to transactions prior to variance

b) As to transactions subsequent to variance

c) As to all transactions

d) From his liability under the guarantee.

112) A guarantee obtained by a creditor by keeping silence as to material circumstances

is –

a) Valid

b) Voidable

c) Unenforceable

d) Invalid

113) where there are co-sureties, a release by the creditor of one of them –

a) Discharges the other co-sureties

b) Does not discharge the other co-sureties

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c) Makes all the co-sureties immediately liable

d) Makes the contract of guarantee void.

114) the right of subrogation in a contract of guarantee is available to the

a) Creditor

b) Principal debtor

c) Surety

d) Indemnified

115) The omission of the creditor to sue within the period of limitation –

a) Discharges the surety

b) Does not discharge the surety

c) Makes the contract of guarantee void

d) Makes the contract of guarantee illegal.

116) in a sale, the property in goods –

a) Is transferred to the buyer,

b) Is yet to be transferred to the buyer

c) May be transferred at a future time

d) Is transferred when goods are delivered to the buyer

e) Is transferred when the buyer pays the price

117) In a sale, if the goods are destroyed, the loss falls on –

a) The buyer

b) The seller

c) Partly on buyer and partly on seller

d) The seller if price has not been paid

118) The term property as used in the sale of goods act 1930 means

a) Possession

b) Ownership

c) Ownership and possession both

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d) The subject matter of contract of sale.

119) If a price is not determined by the parties in a contract of sale , the buyer is bound
to pay

a) The price demanded by the seller,

b) A reasonable price

c) The price which the buyer thinks is reasonable

d) The price to be determined by a third independent person.

120) The doctrine of caveat emptor applies –

a) in case of implied conditions and warranties

b) When the buyer does not intimate the purpose to the seller and depends upon his own skill
and judgment

c) When goods are sold by sample

d) When goods are sold by description

121) If a sale is by sample as well as by description, the implied condition is that the
goods shall correspond with –

a) Sample

b) Description

c) Both sample and description

d) Either sample or description.

122) In a sale, there is an implied condition on the part of the seller that he –

a) Has a right to sell the goods

b) Is in possession of the goods

c) Will have the right to sell

d) Will acquire the goods

123) A condition is a stipulation which is a –

a) Essential to the main purpose of contract of sale

b) Not essential to the main purpose of contract of sale,

c) Collateral to the main purpose of contracts of sale

By Prof Mayuree Tawade Page 23

d) none of the above.

124) In case of breach of a warranty, the buyer can –

a) Repudiate the contract

b) Claim damages only

c) Return the goods

d) Refuse to pay the price

e) Refuse to take delivery of the goods.

125) In case of breach of a warranty, the buyer can –

a) Claim damages only

b) Repudiate the contract

c) Cannot return the goods

d) Refuse to take delivery of the goods

By Prof Mayuree Tawade Page 24

 SALE OF GOODA ACT 1930
1. The Sale of Goods Act, was enacted on

A. 15th, February, 1930

B. 15th, March, 1930
C. 15th, April, 1930
D. None of above

2 The Sale of Goods Act, was enforced on

A. 1st day of May, 1930

B. 1st day of June, 1930
C. 1st day of July, 1930
D. None of above

3. The sale of Goods Act, 1930 contains

A. 66 Sections
B. 68 Sections
C. 70 Sections
D. None of above

4. The Sale of Goods Act, 1930 is based on

A. US Sale of Goods Act

B. English Sale of Goods Act
C. Indian Sale of Goods Act
D. None of above

5. Section 2, of The Sale of Goods Act is about

A. Principles
B. Definitions
C. Exceptions
D. None of above

6. As per-section 2(1), a person who buys or agrees to buy goods is called

A. Buyer
B. Seller
C. Both (a) and (b)
D. None of above

7. The voluntary transfer of possession from one person to another is called

A. Transfer
B. Change of possession

By Prof. Mayuree Tawade Page 1

 C. Delivery
D. None of above

8. Section 2, sub-section______, of the Sale of Goods Act, 1930 defines "Goods"

A. 5
B. 6
C. 7
D. None of above

9. As per section 2, sub section 7 every kind of moveable property other than actionable
claim and money is called

A. Goods
B. Future goods
C. Both (a) and (b)
D. None of above

10. Section 2, sub-section______, of the Sale of Goods Act, 1930 defines "Goods"

A. In future prescribed time

B. After making of contract
C. Before making of contract
D. None of above

11. as per section 2 sub-sections 8, of the Sales of Goods Act, insolvent means a person

A. Who has ceased to pay his debts in Or cannot pay his debts as they
B. The ordinary course of business become due
C. Both (a) and (b)
D. None of above

12. The agent having in customary course of business as such agent authority either to
sell goods or to consign goods for the purpose of sale or to buy goods or to raise money
on the security of goods is called

A. Agent
B. Mercantile agent
C. Partner
D. None of above

13. What is the purpose behind the enactment of Sale of Goods Act, 1930?

A. To define the laws relating to the sale of goods

B. To consolidate and amend the laws relating to the sale of goods
C. To consolidate, amend and define the laws relating to the sale of goods

By Prof. Mayuree Tawade Page 2

14. Section 2(1) of Sale of Goods Act defines ‘buyer’ as:

A. Person who buys goods and services

B. Person who agrees to buy goods
C. Person who buys or agrees to buy goods
D. Person who buys or agrees to buy goods and services

15. Before the enactment of Sale of Goods Act, the provisions regarding Sale of Goods
were contained in:

A. Indian Contract Act, 1872

B. Indian Registration Act, 1908
C. Transfer of Property Act, 1882
D. Indian Partnership Act, 1932

16. Which of the following cannot be said to be included in the term “goods” defined
under section 2(7) of the Sale of Goods Act, 1930:

A. Stock
B. Shares
C. Growing crops
D. Actionable claims

17. Which of the following most appropriately describes the term “sale” as per Sale of
Goods Act, 1930?

A. A contract whereby seller transfers the property in goods

B. A contract whereby seller transfers or agrees to transfer the property in goods to the
buyer for a price
C. A contract where transfer of the property in goods is to take place at a future time
D. A contract where transfer of the property in goods is to take place subject to some
condition thereafter to be fulfilled

18. When does an agreement to sell become a sale as per the provisions of Sale Of Goods
Act, 1930:

A. When the seller transfers the property in goods

B. When the seller agrees to transfer the property in goods
C. When the time elapses or the conditions subject to which the property in the goods is
to be transferred are fulfilled
D. Agreement to sell is deemed to be sale

19. What can be the subject matter of the contract of sale as per section 6 of Sale of
Goods Act?

A. Only existing goods owned or possessed by the owner

B. Only Future goods
C. Existing goods which are neither owned nor possessed by the owner

By Prof. Mayuree Tawade Page 3

 D. Existing goods, owned or possessed by the owner or future goods

20. Where in a contract of sale the seller purports to affect the present sale of the future
goods, the contract operates as:

A. A Contract of sale
B. An agreement to sell the goods
C. A Contact of sale or agreement to sell
D. It is not a valid contract

21. In a contract for sale of specific goods, the goods, without the knowledge of seller
perished at the time when the contract was made, the contract is:

A. A voidable contract at the instance of seller

B. A voidable contract at the instance of buyer
C. A voidable contract subject to approval of the civil court
D. A void contract

22. Can the agreement be avoided when there is an agreement to sell specific goods but
subsequently the goods perish or become so damaged without any fault of the seller or
buyer?

A. It can be avoided by the parties

B. It can’t be avoided by the parties
C. It can be avoided only with the approval of Court
D. It can be avoided only if there is a contract in this regard between the parties

23. A contract of sale may be made:

A. A in writing or by word of mouth

B. partly in writing of partly by word of mouth
C. by the implied conduct of parties
D. All of the above

24. A is a stipulation essential to main purpose of the contract and the breach of which
gives rise to a right to treat the contract as repudiated:

A. Condition
B. Warranty
C. Disclaimer
D. Guarantee

25. A is a stipulation collateral to main purpose of the contract and the breach of which
gives rise to a right to claim for damages but not to a right to reject goods and treat the
contract as repudiated:

A. Condition
B. Warranty

By Prof. Mayuree Tawade Page 4

 C. Terms of contract
D. Disclaimer

26. When can a breach of condition be treated as a breach of warranty by the seller as
per the provisions of Sale of Goods Act, 1930?

A. When the buyer fulfils the condition stipulated to the contract of sale
B. When the contract of sale is severable and the buyer has accepted the entire goods
C. When the contract of the sale is not severable and the buyer has accepted the goods or
part thereof, subject to an express or implied term in the contract
D. When the contract of the sale is severable and the buyer has accepted the entire goods
or part thereof

27. In the Contract of Sale, there is an implied warranty that:

A. Seller has a right to sell the goods

B. The buyer has the right to have and enjoy the quiet possession of goods only.
C. The goods shall be free from any charge or encumbrance
D. The buyer has the right to have and enjoy the quiet possession of goods and that the
goods shall be free from any charge or encumbrance

28. In a Contract for Sale of goods by sample and description, it is necessary that:

A. The bulk of goods shall correspond with the sample as well as description
B. The bulk of goods shall correspond with sample while it is not necessary that the bulk
of goods shall correspond with the description
C. The bulk of goods shall correspondent with the description and it is not necessary that
the bulk of goods correspond with the sample
D. Variation of the bulk of goods with the sample and description of goods is only to be
treated as a breach of warranty

29. In which of the following cases, there is an implied condition as to particular quality
or fitness of goods:

A. When buyer makes known to the seller the particular purpose for which goods are
required as to show that buyer relies on seller’s skill and judgment and the goods are
of description which it is in the ordinary course of seller’s business to supply
B. When buyer makes known to the seller the particular purpose for which goods are
required as to show that buyer relies on seller’s skill and judgment though the seller
does not, in the ordinary course of its business, supply such goods
C. When goods are bought by description from seller who deals in goods of that
description, whether as a manufacturer or otherwise and the buyer has examined the
goods and found defects in the same
D. When there is a contract for sale of a specified article under its patent or other trade
name

By Prof. Mayuree Tawade Page 5

30. When does the property in the goods pass to the buyer in case of contract for the
sale of specific or ascertained goods:

A. When the contract for sale is made

B. When the parties to the contract intend it to be transferred
C. When the price is paid for the goods
D. When the delivery of goods has been made

31. When does the property in the goods pass to the buyer in case of an unconditional
contract for the sale of specific goods in a deliverable state?

A. When the contract is made irrespective of whether the time of payment of price or
delivery of goods is postponed or not
B. When the party Intends to transfer
C. At the time of the payment of the price of goods
D. At the time of delivery of goods

32. When does the property in the goods pass to the buyer in case of a contract for the
sale of unascertained or future goods by description?

A. When the goods of that description and in a deliverable state are unconditionally
appropriated to the contract either by the seller or by the buyer with the assent of each
other
B. When the goods of that description and in a deliverable state are conditionally
appropriated to the contract either by the seller or by the buyer with the assent of each
other
C. When the goods of that description and in a non-deliverable state are conditionally
appropriated to the contract either by the seller or by the buyer with the assent of each
other
D. When the goods of that description and in a non-deliverable state are unconditionally
appropriated to the contract either by the seller or by the buyer with the assent of each
other

33. In which of the following cases property in the goods does not pass to the buyer
when the goods are delivered to the buyer on approval or “on sale or return” or other
similar terms:

A. When the buyer signifies his approval or acceptance to the seller as to goods
B. When the buyer retains the goods without giving a notice of rejection and upon expiry
of reasonable time
C. When buyer gives a notice of rejection to the seller
D. When buyer does any other act adopting the transaction

By Prof. Mayuree Tawade Page 6

34. Choose the most appropriate answer. Unless otherwise agreed, the goods remain at
seller’s risk until:

A. The goods have been delivered to the buyer

B. The goods have been utilised by the buyer
C. The price to the goods has been received by seller
D. The property therein has been transferred to the buyer

35. When is the sale by mercantile agent who is in the possession of the goods or
documents of the title to the goods not valid:

A. When the mercantile agent acts in the ordinary course of business

B. When the buyer is acting in good faith and
C. When the buyer acts in good faith and has notice that the seller has no authority to sell
at the time of the contract of sale
D. When the owner has expressly authorised the act

36. When the seller has obtained possession of goods under a voidable contract, what
title does the buyer acquire when the goods are passed under the contract of sale:

A. Buyer acquires good title to the goods if he acts in good faith though he had notice of
seller’s defect of title
B. Buyer acquires good title to the goods if he had no notice of seller’s defect of title
though he did not act in good faith
C. Buyer does not acquire a good title to the goods even though he acts in good faith and
without notice of seller’s defect of title
D. Buyer acquires good title to the goods if he acts in good faith and without notice of
seller’s defect of title

37. Which of the following cannot be treated as ‘Delivery’ under the Sale of Goods Act,
1930?

A. Doing anything which has the effect of putting goods in possession of legal
representatives of seller
B. Doing anything which has the effect of putting goods in possession of any person
authorised by the buyer
C. Doing anything which has the effect of putting goods in possession of the buyer
D. Doing anything which the parties agree to be treated as delivery

38. What is the effect of part delivery of goods made in the progress of delivery of the
whole of the goods as per section 34 of the Sale of Goods Act, 1930:

A. Part delivery does not operate as a delivery of remainder.

B. Part delivery of the goods cannot be made under the Act.
C. Part delivery has the same effect as the delivery of the whole only in case of
perishable goods.

By Prof. Mayuree Tawade Page 7

 D. Part delivery has the same effect as the delivery of the whole irrespective of the type
of goods unless part delivery is made with intention of severing it from whole

39. Which of the following statement is correct with regard to delivery of goods by a
seller?

A. The seller is bound to deliver the goods under all circumstances

B. The seller is bound to deliver the goods when there is either an express contract or
when the buyer applies for delivery
C. The seller is bound to deliver the goods only when there is an express contract to that
effect
D. The seller is bound to deliver the goods only when the buyer applies for delivery

40. Which of the following statements is incorrect in respect of Rules as to delivery?

A. Where the goods are in the possession of a third person, the goods are not delivered to
buyer unless such third person acknowledges to the buyer that the goods are held by
him on seller’s behalf
B. Where no time is fixed for sending the goods it should be delivered within a
reasonable time
C. The expenses of and incidental to putting the goods into a deliverable state shall be
borne by the buyer
D. Demand or tender of delivery may be treated as effectual only when made at a
reasonable hour

41. as per the provisions of Sale of Goods Act, 1930 which of the following is not a
consequence of delivery of wrong quantity of goods to the buyer:

A. Where the seller delivers less than the contracted quantity the buyer may reject the
same
B. Where the seller delivers more than the contracted quantity, the buyer can only reject
the goods not included in the contract
C. Where the seller delivers the contracted goods mixed with the goods of a different
description, the buyer can reject the goods of different description or may reject the
whole of the goods.
D. Where the seller delivers more than the contracted quantity, the buyer may accept the
goods included in the contract and reject the rest, or he may reject the whole. If the
buyer accepts the whole of the goods so delivered, he shall pay for them at the
contract rate

42. Which of the following is true as regards delivery of goods in instalments as

provided under Sale of Goods Act:

A. The buyer is bound to accept the instalment deliveries only in case of perishable
goods
B. The buyer is bound to accept the instalment deliveries only in case of sale of goods by
description

By Prof. Mayuree Tawade Page 8

 C. The buyer is bound to accept the instalment deliveries only if agreed between the
parties
D. Delivery of goods can’t be made in instalments

43. Choose the most appropriate option out of the following in respect to return of
rejected goods by the buyer:

A. Buyer is not bound to return any type of rejected goods, having right to do so, if he
intimates to the seller that he refuses to accept the same
B. Buyer is bound to return all types of rejected goods
C. Buyer is bound to return only those rejected goods which are perishable
D. Buyer is bound to return only those rejected goods which are sold by description.

44. Out of the following persons which of the following does not come under the
definition of the ‘’unpaid seller’’ as per Chapter V of Sale of Goods Act:

A. A seller to whom the whole of the price has not been paid or tendered
B. A seller to whom more than half of the price has been paid or tendered
C. A seller who has received a bill of exchange as conditional payment and the condition
on which it was received has not been fulfilled by reason of the dishonour of the
instrument or otherwise.
D. A seller who has received a negotiable instrument as conditional payment and the
condition on which it was received has not been fulfilled by reason of the dishonour
of the instrument or otherwise

45. Which of the following is not the right of an unpaid seller under Sale of Goods Act,
1930:

A. Right of lien on goods for the price while the goods are in possession of seller.
B. Right of stopping the goods in transit, in case of insolvency of buyer
C. Right of resale as limited by the Act
D. Right of withholding delivery where the property in the goods has passed to the buyer

46. In which of the following cases the unpaid seller cannot exercise the right of lien on
goods in his possession:

A. Where goods have been sold without any stipulation regarding credit
B. Where the goods have been sold on credit but the term of the credit has expired
C. Where the buyer becomes insolvent
D. Where the goods have been sold on credit but the term of credit has not expired

47. In which of the following cases an unpaid seller does not lose his right of lien:

A. When seller delivers the goods to a carrier or other bailee for the purpose of
transmission to the buyer without reserving the right of disposal
B. When buyer or his agent lawfully obtains possession of the goods
C. When the unpaid seller has obtained the decree for the price of the goods

By Prof. Mayuree Tawade Page 9

 D. When the unpaid seller himself waives off his right of lien

48. In which of the following cases an unpaid seller who has parted with the possession
of the goods has the right of stopping such goods in transit:

A. When the buyer of goods has been declared as a person of unsound mind
B. When the buyer of goods has been has been sentenced to imprisonment for a term of
more than six months under any law
C. When the buyer of goods has been declared as an insolvent
D. When the buyer of goods has been sentenced to imprisonment for a term of more than
two years under any law

49. In which of the following cases, transit of goods is not deemed to be at an end:

A. When the goods are rejected by the buyer and the carrier or bailee continues in
possession of goods
B. When the buyer or his agent in that behalf obtains delivery of goods before their
arrival at the appointed destination
C. When goods are in the possession of the carrier or bailee on buyer’s behalf after their
arrival at the appointed destination
D. When the carrier or other bailee wrongfully refuses to deliver the goods to the buyer
or his agent

50. Which of the following is incorrect with regard to the manner through which right
of stoppage in transit can be exercised by an unpaid seller:

A. An unpaid seller can exercise his right of stoppage in transit by taking actual
possession of the goods
B. An unpaid seller can exercise his right of stoppage in transit by giving notice of his
claim to the carrier who is in the possession of goods
C. An unpaid seller can exercise his right of stoppage in transit by giving notice of his
claim to the bailee who is in the possession of the goods
D. Unpaid seller can exercise the right of stoppage in transit by giving an advertisement
in leading newspaper of the place where the buyer ordinarily carries on his business

51. Choose the most appropriate option in respect of a Sale which is not generally
rescinded by lien or stoppage in transit:

A. A contract of sale is rescinded by the exercise of an unpaid seller’s right of lien or

stoppage of lien
B. Where an unpaid seller who has exercised his right of lien or stoppage in transit
resells the goods, the buyer of such goods does not acquire a good title thereto as
against the original buyer.
C. Where the seller resells the goods in case of buyer’s default the original contract of
sale is not rescinded
D. Where the unpaid seller who has exercised his right of lien or stoppage in transit gives
notice to buyer of his intention to resell, the unpaid seller may resell the goods within

By Prof. Mayuree Tawade Page 10

 a reasonable time and recover damages incurred due to his breach of the contract from
the original buyer

52. Which of the following does not fall in the category of “goods”?

A. Stock and shares

B. Money and actionable claims
C. Growing crops and grass
D. Things attached to or forming the part of land which are agreed to be severed before
sale or under contract of sale

53. Where there is a contract for the sale of specific or ascertained goods the property in
them is transferred to the buyer at the time when the:

A. Parties intend the property in goods to pass

B. Contract is entered into
C. Price is paid
D. Delivery of goods has been made

54. A contract of sale can be:

A. Absolute only
B. Conditional only
C. Absolute or conditional
D. Conditional only with the consent of the buyer

55. Where the transfer of the property in the goods is to take place at a future time or
subject to some condition, then such contract is called:

A. An agreement to sell
B. A contract to Sale
C. Future Contract
D. Conditional contract

56. What are the requisites of contract of sale:

A. An Offer and delivery of goods

B. An Offer to buy or sell goods, for a price and its acceptance
C. An Offer, delivery, possession and acceptance
D. An Offer, price, delivery and acceptance

57. According to Sale of Goods Act, 1930, ‘seller’ means a person:

A. who only agrees to sell the goods

B. who only sells the goods
C. who sells or agrees to sell
D. who transfers the possession of the goods to the other party

By Prof. Mayuree Tawade Page 11

58. Where the goods are of perishable nature or where the unpaid seller exercises his
right of lien or right of stoppage of goods in transit and gives notice to buyer for
payment and buyer does not pay or tender within reasonable time, an unpaid seller
may:

A. Resell the goods and can recover the damages from the original buyer
B. Cannot resell the goods
C. Ask the buyer again to make payment
D. Take possession and mark the goods as bad

59. _____________ is termed as consideration in a contract of sale:

A. Exchange money
B. Barter money
C. Price
D. Reward

60. When the buyer chooses to treat a breach of a condition as a breach of warranty,
then the buyer may:

A. Repudiate the contract

B. Reject the goods
C. Ask for indemnification
D. set up against the seller the breach of warranty in diminution or extinction of the price
or can sue the seller for damages

61. When the price is not determined in the contract or agreed between the parties, the
buyer shall pay the seller:

A. a fair price
B. a reasonable price
C. market price
D. average price

62. In case of breach of condition, the breach gives rise to:

A. Claim for damages

B. Rejection of goods
C. A right to repudiate the contract
D. A right of indemnification

63. Which of the following is not an implied condition or warranty in a contract of sale:

A. The seller may take back the possession of the goods at a future date
B. The seller has a right to sell the goods and that in the case of an agreement to sell he
will have a right to sell the goods at the time when the property is to pass
C. The buyer shall have and enjoy quiet possession of the goods

By Prof. Mayuree Tawade Page 12

 D. The goods shall be free from any charge or encumbrance in favour of any third party
not declared or known to the buyer before or at the time when the contract is made.

64. If the contract of sale is by sample as well as by description:

A. It is sufficient if the bulk of goods correspond to sample only

B. It is sufficient if the bulk of goods correspond to description only
C. It is not necessary to conform to the sample or description
D. It is not sufficient that the bulk of the goods correspond with the sample if the goods
do not correspond with the description

65. Where under a contract of sale, the property in the goods has passed to the buyer
and the buyer wrongfully neglects or refuses to pay for the goods, the seller may:

A. Ask for indemnification

B. Sue the buyer for damages of non-acceptance
C. Sue the buyer for compensation
D. Sue the buyer for the price of goods

66. The position of the finder of lost goods is that of:

A. Bailee
B. Bailor
C. Creditor
D. True owner

67. X purchases a car from Y. After 6 months, Z, the true owner of the car, demanded it
from X. X had to return it to its true owner. X was entitled to recover the full price even
though several months have passed. This is an example of:

A. Condition as to description
B. Condition as to sample
C. Condition as to title
D. Condition as to fitness

68. A drug was sold by an auction and according to the usage of trade it was to disclose
in advance of any vast damage caused in the quality of the drug but such disclosure was
not made and the drug was found to be defective. This is an example of:

A. Warranty as to undisturbed possession

B. Warranty as to quality or fitness by usage of trade
C. Warranty as to non-existence of encumbrances
D. Disclosure of dangerous nature of goods

By Prof. Mayuree Tawade Page 13

69. Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the
buyer may sue for:

A. Damages for non-delivery

B. Damages for non-acceptance
C. Specific performance
D. Compensation

PRACTICE QUESTIONS

1. As per section 2(12), of the Sale of Goods Act, quality of goods include

A. State of goods

B. Conditions of goods

C. Both (a) and (b)

D. None of above

2. The goods identified and agreed upon at the time a contract of sale is made are called

A. Ordinary goods

B. Specified goods

C. Scheduled goods

D. None of above

3. Section 4, of the Sale of Goods Act 1930, deals with

A. Sale

B. Agreement to sell

C. Both (a) and (b)

D. None of above

4. As per section 4(2), of The Sale of Goods Act, a contract of sale may be

A. Absolute

B. Conditional

C. Both (a) and (b)

D. None of above

5. According section 5(2) Subject to provision of any law for the time being in force a
contract of sale may be

By Prof. Mayuree Tawade Page 14

A. Made in writing

B. By words of mouth

C. Partly in writing or partly oral

D. All of above ways words of mouth

6. Section 12, of the Sale of Goods Act deals with

A. Condition in contracts

B. Warranty in contracts

C. Both (a) and (b)

D. None of above

7. A stipulation in contract of sale with reference to goods which are the subject there of
may be

A. A condition

B. A warranty

C. Both (a) and (b)

D. None of above

8. Section 31 of the Sale of Goods Act deals with duties of seller

A. To show goods

B. To deliver goods

C. To change goods

D. None of above

9. Section 31, of the Sale of Goods Act, duty bounds the buyer to

A. Accept the goods

B. Pay for the goods

C. Both (a) and (b)

D. None of above

10. Section_____ to______, of the Sale of Goods Act deals with performance of the
contract

A.31 to 44

By Prof. Mayuree Tawade Page 15

B. 25 to 40

C. Both (a) and (b)

D. None of above

11. Definition of unpaid seller is provided in Section____ of The Sale of Goods Act, 1930

A.45

B. 46

C. 47

D. None of above

12. Section_____ of the Sale of Goods Act deals with rights of unpaid seller

A.46

B. 47

C. 48

D. None of above

By Prof. Mayuree Tawade Page 16

 NEGOTIABLE INSTRUMENT ACT 1881

* Descriptive questions with answers:

1. A promissory note, bill of exchange or cheque payable either to order or to bearer is called
– Negotiable Instrument

2. How many total sections are there in the Negotiable Instruments Act? – 147

3. Which section of Negotiable Instruments Act deals with Promissory Note? – Section 4

4. In which section bill of exchange is dealt with in Negotiable Instruments Act? – Section 5

5. What does Section 6 deals within the Negotiable Instruments Act? – Cheque

6. Which section in the Negotiable Instruments Act deals with Negotiable Instruments? –
Section 13

7. Drawee is defined in which section of the Negotiable Instruments Act? – Section 7

8. Which section of Negotiable Instruments Act deals with Dishonour by non-payment? –

Section 92

9. Which section of Negotiable Instruments Act deals with Cheque crossed generally? –
Section 123

10. Which section of Negotiable Instruments Act deals with Presumptions as to Negotiable
Instruments? – Section 118

11. Which section of Negotiable Instruments Act deals with Dishonouring of Cheque? –
Section 138

12. What type of negotiable instrument is a currency note? – Money is Not a Negotiable
Instrument

13. An order in writing directing a person to pay a sum of money to a specified person is
called _____. – Bill of Exchange

14. A bill of exchange drawn on a specified banker, and not expressed to be payable
otherwise than on demand is called ____. – Cheque

15. How many types of cheques are there as per the Negotiable Instruments Act? – 4 (Open
cheque, Crossed cheque, Bearer cheque, Order cheque)

16. 1. Who are the parties in a bill of exchange? Drawer, Drawee, Payee[Sec.7]

17. ________is an instrument in writing containing an unconditional undertaking signed by

the maker to pay a certain sum of money only to, or to the order of a certain person, or to the
bearer--Promissory Note[Sec.4]

By Prof. Mayuree Tawade Page 1

18. ________is an instrument in writing containing an unconditional order, signed by the
maker, directing a certain person to pay a certain sum of money only to, or to the order of a
certain person or to the bearer. Bill of exchange [Sec.5]

19. ________is a person entitled in his own name to the possession of a promissory note, bill
of exchange or cheque and to receive or recover the amount due thereon from the parties.

Holder [Sec.8]

20. _______is generally a person who for consideration became possessor of a promissory
note, bill of exchange or cheque--Holder in due course [Sec.9]

21. Negotiable Instrument is defined in _________ Sec.13

22. What is the process by which a negotiable instrument is transferred to any person so as to
constitute such person the holder called? Negotiation [Sec.14]

23. Liability of drawer to compensate the holder in case of dishonour is primarily provided
under_______ Sec 30

24. A negotiable instrument made, drawn, accepted, endorsed or transferred without

consideration, or for a consideration which fails, creates _________ of payment between the
parties to the transaction. No obligation [Sec.43]

25. __________is one mode by which the maker of a negotiable instrument discharges
himself from liability. Cancellation. Release and Payment are other modes [Sec. 82]

26. Material alteration on a negotiable instrument renders it void ___________is an

exception. Common intention [Sec.87]

27. Penalties, Cognizance, Jurisdiction etc. are discussed in __________ of the Act. Chapter
17

28. Issuance of notice by the holder in case of dishonour is primarily provided in _________
Sec.93

29. Sec.118 of the Act deals with_______ Presumptions

30. A cheque is crossed_________ when it bears across its face an addition of the name of a
banker, either with or without the words “not negotiable” Specially [Sec.124]

31. Condo nation of delay in making complaint is provided under_______ Proviso to

Sec.142

32. Compounding of offences is provided under________ Sec.147

33. When the amount is stated differently in words and figures, the amount stated in
_________is to be taken. words [Sec.18]

By Prof. Mayuree Tawade Page 2

34. Unless the contrary is proved, holder of negotiable instrument _________presumed to
have received the cheque referred under Sec.138 for the discharge of any debt or liability.
Shall be [Sec.139]

35. Signing a document written, read and understood is called______ execution.

36. “Chairman/Director Of The Company Cannot Be Prosecuted Without Impleading The

Company As Accused”. Is this statement true? True

37. ___________ is the section in NI Act dealing with offences committed by companies.
141

38. The payee or holder in due course of the cheque must make a demand for payment of the
money involved by giving a notice in writing to the drawer of the cheque within __________
days of the receipt of information by him from the bank regarding the return of the
cheque as unpaid. 30

39. The time period given to the drawer of cheque to repay the amount in cheque to the payee
as given in Section 138(c) is ____________ 15 days

40. Among sections 148 and 143A of NI Act, which one has retrospective effect? 148

41. Accepting corporate insolvency resolution is a ground to quash 138 cases. What is the
fate of this statement? False

42. In Arun Kumar vs. Anita Mishra, which among the following is the decision by Supreme
Court? Complaint U/s 138 NI Act Maintainable Against Dishonour Of Cheque Issued
Pursuant To Lok Adalat Award

43. As per Pooja Ravinder Devidasani v. State of Maharashtra & Anr., 2014(14) SCALE of
Supreme Court which among the following statement is true: for making a director an
accused in criminal proceedings for dishonor of cheque, it must be shown that the
director concerned was in charge of and was responsible to the Company for the
conduct of its business

44. In Chintalapati Srinivasa Raju v. Securities and Exchange Board of India, (2018) 7 SCC
443, which among the following did the Supreme Court decide: for making a director an
accused in criminal proceedings for dishonor of cheque, it must be shown that the
director concerned was in charge of and was responsible to the Company for the
conduct of its business

45. Which among the following cases decided by Supreme Court held that Complaint U/s
138 NI Act Cannot Be Quashed When Disputed Question Of Facts Are Involved:
Rajeshbhai Muljibhai Patel and others etc vs. State of Gujarat and Another Etc

46. What is the nature of presumption in Sections 118 and 139 of Negotiable Instruments
Act? Rebuttable

By Prof. Mayuree Tawade Page 3

47. 34. In Uttam Ram vs Devinder Singh Hudan & ANR what was the decision of the
Supreme Court? The burden of proving the due amount should not be on the
complainant as if he has to prove a debt before a civil court.

48. As per the Negotiable Instruments Act, 2015, if the cheque is presented for payment by
the payee or holder in due course, otherwise through an account, which court will have
jurisdiction to try the case under S.138? The Court within whose local jurisdiction the
branch of the drawee bank where the drawer maintains the account, is situated.

49. Which of the following ruling held that an instrument cannot be termed as a ‘Cheque’ if it
does not specify a certain amount of money to be paid to a certain person? M/s.Shree Tyres
vs. State

50. 38. Which case held that the legal heirs of the convict have a right to challenge the
conviction of their predecessor only for the purpose that he was not guilty of any offence?
M.Abbas Haji vs T.N.Channakeshava

By Prof. Mayuree Tawade Page 4

MCQ

1. _______ means ‘something legally transferable from one person to another for a
consideration’.

a. Instrument b. Negotiable c. Negotiable Instruments d. all of the

above

Ans. b

2. ______ means ‘a written document by which some legal rights are created in favor of
some person’

a. Instrument b. Negotiable c. Negotiable Instruments d. all of the

above

Ans. a

3. Negotiable instrument means a promissory note, bill of exchange or cheque, payable

to ___________

a. Bearer b. order c. either to bearer or order d. neither bearer nor order

Ans. c

4. A negotiable instrument is freely transferable, by delivery if it is a/an

______________ instrument.

a. order b. bearer c. both a & B d. None of the above

Ans. b

5. A negotiable instrument is freely transferable, by endorsement if it is a/an

____________ instrument.

a. order b. bearer c. both a & b d. None of the above

Ans. a

6. The transferee of a negotiable instrument is the one

a. who transfer the instrument b. on whose name it is transferred

c. who en chases it d. none of the above

Ans. b

7. The transferor of a negotiable instrument is the one

a. who transfer the instrument b. on whose name it is transferred

c. who en chases it d. none of the above

By Prof. Mayuree Tawade Page 5

Ans. a

8. The instrument must be taken in good faith and with a

a. Interest b. consideration c. legal relation

d. business motive

Ans. b

9. When an instrument has been lost it is presumed that it was ____________

a. expired b. duly stamped c. stolen d. misplaced

Ans. b

10. Which of the below given sentence is proper as to considered to be written in

negotiable instruments

a. I promise to pay B rs.500 b. Mr. B I.O (owe).U Rs.1000.

c. I am liable to pay you Rs.1000. d. none of the above.

Ans. d

11. _________ an instrument in writing containing an unconditional undertaking signed

by the maker to pay a certain sum of money only to, or to the order of, a certain person
or to the bearer of the instrument

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. a

12. ______________ is an instrument in writing, containing an unconditional order,

signed by the maker, directing a certain person, to a pay a certain sum of money only
to, or to the order of a certain person or to the bearer of the instrument

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. b

13. The number of parties to a bill of exchange is _______

a. 2 b. 4

c. 6 d. 3

Ans. d

By Prof. Mayuree Tawade Page 6

14. The number of parties to a Promissory Note is _______

a. 2 b. 4

c. 6 d. 3

Ans. a

15. Sec. 4 of negotiable instruments Act 1880 deals with

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. a

16. Sec. 5 of negotiable instruments Act 1880 deals with

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. b

17. Sec. 6 of negotiable instruments Act 1880 deals with

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. c

18. The parties of a bill of exchange are

a. drawer acceptor and payee b. banker drawee and payee

c. banker acceptor and payee d. banker drawer and payee

Ans. a

19. __________________ cannot be a bearer instrument

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. a

20. Acceptance is _________________ in case of bill of exchange

a. compulsory b. optional c. not compulsory

d. adequate

By Prof. Mayuree Tawade Page 7

Ans. a

21. Acceptance is _________________ in case of bill of exchange

a. compulsory b. optional c. not compulsory

d. not necessary

Ans. d

22. Drawer is both debtor to one and creditor to another in case of ________________

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. b

23. Liability of maker is __________ in case of bill of exchange

a. primary b. unlimited c. unconditional

d. secondary

Ans. d

24. ___________ is an order to pay the third party

a. Promissory Note b. bill of exchange

c. Cheque d. none of the above

Ans. a

25. A Promissory Note or Bill of Exchange can be made payable

a. On demand b. On a specific date

c. After a specified period – months or days. d. all of the above

Ans. d

26. To calculate the maturity date of a negotiable instrument the drawing date to be
___for counting

a. included b. considered c. excluded

d. none of the above

Ans. c

By Prof. Mayuree Tawade Page 8

27. If the instrument is not ‘on demand’ ___________ days of grace is granted.

a. 7 b. 5

c. 3 d. 4

Ans. c

28. When the is crossed with Two parallel lines or with word ‘& Co.’ etc. this crossing is
known as

a. general crossing b. special crossing c. restrictive

crossing d. none of the above

Ans. a

29. When the is crossed with Two parallel lines or with ‘A/c payee only.’ etc. this
crossing is known as

a. general crossing b. special crossing

c. restrictive crossing d. none of the above

Ans. c

30. In the case of Bill of Exchange drawee is the ____________.

a. maker b. acceptor c. payee d. none of the above

Ans. b

31. When the loss of cheque is intimated to the bank. It is advisable to get the cheque

a. dishonoured b. cancelled c. stalled

d. countermanded.

Ans. d

32. When bank has reason to believe that the title of the presenter is defective, then the
cheque will be

a. dishonoured b. cancelled c. stalled

d. countermanded.

Ans. a

By Prof. Mayuree Tawade Page 9

33. A holder in due course will get protected from earlier defect of

a. no consideration b. conditional delivery

c. unlawful means d. all of the above

Ans. d

34. _____of an instrument means a person legally entitled to possess and receive in his
own name

a. owner b. maker c. holder d. receiver

Ans. c

35. Holder of an instrument is a person who holds the instrument

a. for a longer period b. before maturity

c. after maturity d. on behalf of the owner

Ans. b

36. Countermanding of a cheque is also known as

a. cancellation b. dishonour

c. stop payment d. payment through counter

Ans. c

37. ‘Something legally transferable from one person to another for a consideration’ is
known as

a. Endorsement b. bill of exchange

c. promissory note d. negotiation

Ans. d

38. ‘A written document by which some legal rights are created in favour of some
person’

a. Endorsement b. Instrument

c. promissory note d. negotiation

Ans. b

By Prof. Mayuree Tawade Page 10

39. Which of the following section in Negotiable Instruments Act deals with the bill of
exchange?

a. Section 5 b. Section 6

c. Section 4 d. Section 13

Ans. a

40. Which of the followings are not the Negotiable Instruments as defined by the
Statute.

a. Banker’s Note b. Promissory Note

c. Bill of Exchange d. All of the Instruments are Negotiable Instruments

Ans. d

By Prof. Mayuree Tawade Page 11

 Consumer Protection Act 1986
1.The Consumer protection act 1986 enacted in

A15-Jun-05

b. 24-Oct-86

c. 24-Dec-86

d. 1 Jan 1986

2.The Consumer protection act 1986 extends to

a.The whole India

b.The whole India except Nagaland tribal area,

c.The whole India except Nagaland tribal area and Jammu and Kashmir

d. The whole India except Jammu and Kashmir

3.Complaint means allegation in writing made by a complainant that

a. An unfair trade practice or restrictive trade practice has been adapted by any traders or
service provider

b. The goods bought by him or agreed to be bought by him suffer from one or more defect

c. A traders or the service provider as the case may be has charged for the goods or for the
services mentioned in the complaint a price in excess of the price d. All the above

4.Object of the central council is

a. The right to be protected against the marketing of goods which are hazardous to life and
property

b. The right to informed about the quality , quantity, potency, purity, standard and price of
goods so as to protect the consumer against unfair trade practices

c. The right to be assured, wherever possible access to a variety of goods at competitive

prices

d. The right to heard and to be assured that consumer interests will receive due consideration
appropriate forum

e. All the above

5. Members of state consumer protection council should not exceed

a. Two

b. Five

c. Ten

d. Three

6. The chairman of the district consumer protection council is

a. District magistrate

b. Collector of the District

c. MP of the district

d. None of these

7. Which one of the following know as Consumer disputes redressal agency?

a. District forum

b. State commission

c. National commission

d. All the above

8. President of district forum is

a. Collector of the district

b. A person who are qualified as advocate

c. A person who are qualified to be a district judge

d. None of these

9. The disqualification of the member is

a. Has been convicted and sentenced to imprisonment for an offence which , in the opinion of
the state govt involves moral turpitude b. Is an undercharged insolvent

c. Is of unsound mind

d. All the above

10. Complainant means

a. Consumer

b. Any voluntary consumer association registered under the companies act 1956

c. The central govt or any state govt

d. All the above

11. Complaint means allegation in writing made by a complainant that

a. An unfair trade practice or restrictive trade practice has been adapted by any traders or
service provider

b. The goods bought by him or agreed to be bought by him suffer from one or more defect

c. A traders or the service provider as the case may be has charged for the goods or for the
services mentioned in the complaint a price in excess of the price

d. All the above

12. The following is not a consumer

a. The insurance company

b. A licensee to run a phone

c. A lottery ticket holder

d. All the above

13. The central consumer protection council shall consist of the following members

a. The minister in charge of consumer affairs in the central govt, who shall be its chairman

b. Such member of other official or non-official members representing such interest as may
be prescribed

c. The Chief justice of high court

d. Both A&B

14. The central council shall meet as and when necessary but at least ___ meeting of the
council shall be held every year

a. One
b. Two
c. Three
d. Four
15. Members of state consumer protection council should not exceed
a. Two
b. Five

c. Ten
d. Three

16. The chairman of the district consumer protection council is

a. District magistrate

b. Collector of the District

c. MP of the district
d. None of these

17. Which one of the following know as Consumer disputes redressal agency?
a. District forum
b. State commission
c. National commission

d. All the above

18. President of district forum is
a. Collector of the district
b. A person who are qualified as advocate

c. A person who are qualified to be a district judge

d. None of these

19. Mark the correct option relating to district forum

a. It should have two member , one of whom shall be a woman

b. Members age shall not be less than 35 years old

c. Possess a bachelors of degree from recognized university
d. Ten year knowledge and experience in dealing with problems relating to economics, law,
commerce, accountancy, industry& public affairs

e. All the above

20. The disqualification of the member is
a. Has been convicted and sentenced to imprisonment for an offence which , in the opinion
of the state govt involves moral turpitude
b. Is an undercharged insolvent
c. Is of unsound mind

d. All the above

21. Every appointment of district forum shall be made by the state govt on the
recommendation of a selection committee consisting of the following
a. President of the state commission shall be a chairman
b. Secretary, law dept. of the state shall be a member
c. Secretary, in charge of dept. dealing with consumer affair shall be a another member

d. All the above

22.Who will working as president in case absence of the president of state commission
a. Governor
b. Chief minister

c. A sitting judge of High court

d. Chief justice of high court

23. Mark the correct option

a. Every member of district forum shall hold office a term of 5 years or up to age 65 years
b. The member of district forum shall eligible for reappointment for another term
c. Members of district forum may resign his office in writing addressed to state government

d. All the above

24. Jurisdiction of district for is rupees
a. Exceed twenty lac

b. exceed 50 lac
c. Up to twenty lac

d. twenty to fifty lac

25.The complaint shall ordinarily be decided within
a. Twenty one days from the date on which the complaint was received
b. Thirty days from the date on which the complaint was received
c. Forty five days from the date on which the complaint was received
d. No time limit

26. Where the complaint alleges a defect in the goods which cannot be determined
without proper analysis or test of the goods, the sample of goods forwarded to
appropriate laboratory for laboratory test. Such types of case finding report within
______days
a. 30
b. 40

c. 45
d. 60

27. Every complaint shall be heard as expeditiously as possible and endeavour shall be
made to decide the complaint within a period of ____from the date of receipt of notice
by opposite party where the complaint does not require analysis or testing of
commodities and within____, if it requires analysis or testing of commodities.
a. 3 Months, 5 months
b. 45 days, 90 days

c. 30 days, 90 days
d. None of these

28. Provided that the minimum amount of sum so payable shall not be less than ____ of
the value of such defective goods sold or services provided, as the case may be to such
consumers
a. Rs 25000/-
b. 10%

c. 5%
d. None of these

29. Any person aggrieved by an order made by the District forum may prefer an appeal
such order to the State commission within
a. 60 days

b. 90 days
c. 1 month

d. Thirty days
30. Any person prefer an appeal to state commission shall be deposited amount in
prescribed manner
a. Fifty per cent of that amount
b. Twenty five thousand rupees

c. Whichever is less of the above A&B

d. None of these

31. Consumer Protection Act is applicable to

A. immovable goods

B. movable goods
C. specific goods and services

D. all goods and services

32. The total number of rights given to consumers as per consumer protection Act is
A. 5
B. 4

C. 6
D. 8

33. “Consumer has the right to present before the appropriate forum or authorities all
those matters which effect his interests “this right of consumer is termed as right to be
A. informed

B. heard
C. safety
D. educated

34. The rights of consumers as per consumer protection Act does not include right to be
A. informed

B. heard
C. safety

D. presented
35. When the seller manipulates the price then it is
A. Restrictive trade practices
B. unfair trade practices
C. caveat emptor
D. none of the above

36. Complainant means

a) Consumer

b) Any voluntary consumer association registered under the companies act 1956.
c) The central govt or any state govt
d) One or more consumer where there are numerous consumers having the same interest

e) All the above

37. Complaint means allegation in writing made by a complainant that
a) An unfair trade practice or restrictive trade practice has been adapted by any traders
or service provider
b) The goods bought by him or agreed to be bought by him suffer from one or more defect
c) A traders or the service provider as the case may be has charged for the goods or for the
services mentioned in the complaint a price in excess of the price

d) All the above

38. The following is not a consumer
a) The insurance company
b) A licensee to run a phone

c) A lottery ticket holder

d) All the above

39. Which one of the following know as Consumer disputes redressal agency
a) District forum
b) State commission
c) National commission

d) All the above

40. President of district forum is
a) Collector of the district
b) A person who are qualified as advocate

c) A person who are qualified to be a district judge,

d) None of these
41. Mark the correct option relating to district forum
a) It should have two members, one of whom shall be a woman
b) Members age shall not be less than 35 years old
c) Possess a bachelor of degree from recognized university

d) Ten year knowledge and experience in dealing with problems relating to economics, law,
commerce, accountancy, industry& public affairs

e) All the above

42. Mark the correct option
a) Every member of district forum shall hold office a term of 5 years or up to age 65 years
b) The member of district forum shall eligible for reappointment for another term
c) Members of district forum may resign his office in writing addressed to state government

d) All the above

43. Jurisdiction of district for is rupees
a) Exceed twenty lac

b) Exceed 50 lac

c) Up to twenty lac
d) twenty to fifty lac

44. The complaint shall ordinarily be decided within

a) Twenty one days from the date on which the complaint was received
b) Thirty days from the date on which the complaint was received

c) Forty five days from the date on which the complaint was received
d) No time limit

45. Where the complaint alleges a defect in the goods which cannot be determined
without proper analysis or test of the goods, the sample of goods forwarded to
appropriate laboratory for laboratory test. Such types of case finding report within
______days
a) 30
b) 40

c) 45
d) 60
46. Every complaint shall be heard as expeditiously as possible and endeavour shall be
made to decide the complaint within a period of ____from the date of receipt of notice
by opposite party where the complaint does not require analysis or testing of
commodities and within____, if it requires analysis or testing of commodities.

a) 3 Months, 5 months
b) 45 days, 90 days
c) 30 days, 90 days
d) None of these

47. Provided that the minimum amount of sum so payable shall not be less than ____ of
the value of such defective goods sold or services provided, as the case may be to such
consumers.
a) Rs 25000/-

b) 10 %
c) 5%
d) None of these

48. Any person aggrieved by an order made by the District forum may prefer an appeal
such order to the State commission within
a) 60 days
b) 90 days
c) 1 month

d) Thirty days
49. The minimum age limit for being a member of district forum as per consumer
protection act is
A. 65

B. 35
C. 40

D. 30

50. The maximum age limit of a person who can be a member in state commission is
A. 65
B. 70
C. 35
D. 60
51. The maximum age limit of a person who can be a member in national commission is
A. 65

B. 70
C. 35

D. 60

52. To be a member in any redress forum the person should have minimum ________
years of experience
A. 5

B. 10
C. 12
D. 15

53. Among the following which forum can reappoint the same person as its member?
A. District forum
B. state commission

C. national commission

D. none of the above

54. In which of the forum there is compulsion that a female should be a member of the
forum
A. District forum
B. state commission
C. national commission
D. all of the above *ANSWER: D*

55. The term of office for a member is _______ year in all redress forum
A. 5

B. 10
C. 7
D. 35

56. The jurisdiction of a state commission is

A. below 20 lakhs
B. 20 lakhs to 1 crore
C. above 1 crore
D. none of the above

57. The complaint be in consumer with in ________ of cause occurred

A. 6 months

B. 1 year

C. 2 years
D. 3 months

58. On receiving the complaint the forum will direct the opposite party to answer on
that within __ days
A. 15
B. 20
C. 5

D. 1
59. On receiving the complaint the forum will direct the opposite party to answer on
that within ____ days and may extent the period for _________________ more days.
A. 1 & 15
B. 15 & 1
C. 10 & 1

D. 0 & 1

60. If the opposite party admits the claim the case will be decided by the forum on the
basis of records available within _________months
A. 6

B. 1

C. 3
D. 9

61. In case of goods for which the testing is available the forum must decide the case
within ___ months.
A. 6

B. 5
C. 3
D. 9
62. Appeal against the district forum can be done in _________________
A. State forum
B. high court
C. national forum

D. supreme court

63. Appeal against the national forum can be done in __________

A. district court
B. high court

C. supreme court
D. state forum

64. Any appeal against a forum must be done in a higher forum within ___ days
A. 45

B. 30
C. 60
D. 90
 Intellectual Property act
1.Intellectual Property Rights (IPR) protect the use of information and ideas that are of

a. Ethical value

b. Moral value

c. Social value

d. Commercial value

2.The term ‘Intellectual Property Rights’ covers

a. Copyrights

b. Know-how

c. Trade dress

d. All of the above

3. The following cannot be exploited by assigning or by licensing the rights to others.

a. Patents

b. Designs

c. Trademark

d. All of the above

4. The following can be patented

a. Machine

b. Process

c. Composition of matter

d. All of the above

5. In ‘quid-pro-quo’, quo stands for

a. knowledge disclosed to the public

b. monopoly granted for the term of the patent

c. exclusive privilege of making, selling and using the invention

d. None of the above

6. Symbol of Maharaja of Air India is

a. Copyright

b. Patent

c. Trademark

d. All of the above

7. In India, the literary work is protected until

a. Lifetime of author

b. 25 years after the death of author

c. 40 years after the death of author

d. 60 years after the death of author

8. Design does not include

a. features of shape

b. composition of lines or colours

c. mode or principle of construction

d. None of the above

9. In which year did India enact the present Copyright Act?

1) 1999

2) 2010

3) 2019

4) 1957

10. Berne Convention of 1886 was for __________.

1) Protection of Literary and Artistic Works

2) For Performances and Phonograms

3) For Trade Marks

4) For Cinematographic films

11. Author in case of a cinematograph film means __________.

1) The composer

2) The producer

3) The singer

4) The Director

12. Broadcast Reproduction Right was introduced through the Copyright (Amendment)

Act, ______.

1) 1992

2) 2012

3) 1994

4) 2015

13. Copyright is ______________.

1) Positive right

2) Negative right

3) Exclusive right

4) Both (1) and (3)

14. As per Indian Copyright Law, Fair use does not mean_____.

1) Use for research

2) Use for review

3) Use for non-commercial purposes

4) Use for commercial purposes

15. What is the term of Broadcast Reproduction Right?

1) 10 Years

2) 15 Years

3) 20 Years

4) 25 Years
16. What is the punishment for infringement of Copyright?

1) Imprisonment for 6 months to 3 years and fine of Rs.50,000/- to Rs. 2 lacs

2) Imprisonment for 3 months to 3 years and fine of Rs.10,000/- to Rs. 3 lacs

3) Imprisonment for 1 month to 5 years and fine of Rs.20,000/- to Rs. 10 lacs.

4) Imprisonment for 4 months to 2 years and fine of Rs.25,000/- to Rs. 5 lacs.

17. Which Section of the Copyright Act contains the powers of the Police to seize
infringing copies? (4)

1) Section 32

2) Section 64

3) Section 40

4) Section 58

18. Copyright does not grant protection for : ____.

1) Anonymous work

2) Pseudonymous work

3) Reproduced work

4) Jointly owned work

19-Intellectual Property Rights (IPR) protect the use of information and ideas that are
of
a. Ethical value
b. Moral value
c. Social value

d. Commercial value
20-The term ‘Intellectual Property Rights’ covers
a. Copyrights

b. Know-how
c. Trade dress

d. All of the above

21-The following cannot be exploited by assigning or by licensing the rights to others.
a. Patents
b. Designs

c. Trademark
d. All of the above

22-The following can be patented

a. Machine
b. Process
c. Composition of matter

d. All of the above

23-In ‘quid-pro-quo’, quo stands for

a. knowledge disclosed to the public

b. monopoly granted for the term of the patent

c. exclusive privilege of making, selling and using the invention
d. None of the above

24-Trade mark
a. is represented graphically
b. is capable of distinguishing the goods or services of one person from those of others
c. may include shapes of goods or combination of colours
d. All of the above
25-Symbol of Maharaja of Air India is
a. Copyright

b. Patent

c. Trademark
d. All of the above

26-In India, the literary work is protected until

a. Lifetime of author
b. 25 years after the death of author
c. 40 years after the death of author
 d. 60 years after the death of author
27-Design does not include
a. features of shape
b. composition of lines or colours

c. mode or principle of construction

d. None of the above

28-The agreement that is enforceable by law is known as

a. Valid agreement
b. Void agreement
c. Illegal agreement

d. Unenforceable agreement
29-Which of the following is (are) included in Geographical indications of Goods
a. Handicraft
b. Foodstuff
c. Manufactured

d. All of the above

30- Patent Act does not apply to Ladakh Union Territory

a.Yes
b. No
c. Jammu and Kashmir has an independent Patent Act

31- “Exclusive licence” means

a. a licence from a patentee which confers on the licensee

b. a licence from the Patent registrar
c. a licence under Patent Cooperation Treaty

32-“Invention” involves the process steps

a. true
b. false
c. something different
33-Patent Cooperation Treaty” means

a. Patent Cooperation Treaty signed at Washington

b. Patent Cooperation Treaty signed at Davos
c. Patent Cooperation Treaty signed at Singapore

34-Which one is not inventions

a. an invention the primary or intended use or commercial exploitation of which could be

contrary public order
b. a method of agriculture or horticulture
c. the topography of integrated circuits
d. above all

35- What is not Patentable

a. A new assault gun

b. A new poison capable of human death
c. A new chemical compound usable for huge explosion
d. all above are patentable
e. None of the above is patentable

36- Whether the assignee of a true inventor can ask for Patent

a. Before getting patent assignee has no right to ask for Patent

b. Assignment of an unpatented invention is permissible under the law- so assignee is
competent for asking patent
c. An assignment is not permissible under the Patent act

37- India became a signatory to the Patent Cooperation Treaty (PCT) in 1998

a. True
b. False
c. Signed but the treaty was not implemented

38. As per Section 77(1)(c) of the Act and Rule 126 of the Patents Rules, the Controller
has the power to receive evidence on affidavits which shall be duly sworn in.
a. Yes
b. Evidence through affidavit is not permissible for granting Patent
c. No
d. Only a self-declaration signed before the Controller, who is legally empowered to receive
the evidence, may also be considered as admissible evidence in any proceeding before the
Controller under the Patents Act if the Controller so allows.

39-“True and first inventor” include either the first importer of an invention into India,
or a person to whom an invention is first communicated from outside India.

a. True
b. False
c. Never defined in the Patent act

40. The term “person” as defined in the Patents Act includes Government.

a. Yes
b. No
c. Only Natural or Body Corporate.
d. “person” means only individual or a group of individuals

41. “Legal representative” means a person who in law represents the estate of a
deceased person

a. True
b. True but the power of attorney holder also included in the proposition
c. False

42. An application for patent shall be filed with the Patent Office having appropriate
jurisdiction. The territorial jurisdiction of patent office in respect of a patent
application is decided based on any of the following:

a. Place of residence, domicile or business of the applicant (first mentioned applicant in case
of joint applicants) or,
b. Place from where an invention actually originated or,
c. Address for service in India given by the applicant, when the Applicant has no place of
business or domicile in India (Foreign applicants).
i) all are true
ii) only a is true
iii) Only a and b are true

43. Types of Patent Applications permissible in India

a. Ordinary Application i.e., an application which has been filed directly in the Indian Patent
Office without claiming priority of any foreign application.
b. Convention Application claiming the priority of a country which
is a member to Paris Convention
c. PCT National Phase Application.
d. Divisional Application, i.e, a further application divided out
of the first-mentioned patent application.
e. Patent of Addition i.e. an application for patent in respect of any
improvement in or modification of the invention for which the
patent application has already been filed or patent has been
granted.

i) only b and c
ii) a and c
iii) only a
iv) all

44- Every application for a patent shall be for one invention only and shall
be filed in Form-1 at an appropriate office

a. One invention- one application

b. Up to four connected inventions are permissible
c. Multiple inventions can be clubbed in one application and special fees to be charged for it
d. One major invention and one minor invention are permissible

45. The Madrid Protocol was brought into force in India through which Amendment?
1) The Trade Marks (Amendment) Act, 2010
2) The Trade Marks (Amendment) Act, 2017
3) The Trade Marks (Amendment) Act, 2019
4) The Trade Marks (Amendment) Act, 2015

46. The International classification of goods and services is contained in __________.

1) Nice Classification
2) Vienna Classification
3) TRIPS Classification
4) Madrid Classification

47. What does Collective Trade Marks indicate?

1) Connection of a Trade Mark with a proprietor Partnership Firm.
2) Trade Mark which cannot be subject to monopoly.

3) A unified collection of all the registered Trade Marks.

4) Connection of a Trade Mark with a proprietor Association.
48. Can the Registration of a Trade Mark be made to continue perpetually?
1) Yes. By proving that the Trade Mark has become very famous.
2) No. After the expiry of Registration, a Trade Mark becomes available for public use.

3)Yes. By renewing the Registration upon its expiry.

4) No. After expiry of Registration a Trade Mark can be renewed only with some changes to
it.

49. Under which Section of the Trade Marks Act can an application for Registration be
made?
1) Section 18
2) Section 20
3) Section 3
4) Section 7

50. _____________ is not a requirement for registration of a Trade Mark.

1) Capability of graphical representation
2) Capability of distinguishing goods or services of one undertaking from those of
others
3) Capability of indicating connection in course of trade
4) The Trade Mark should be well known
51. A Trade Mark can be removed from the Register for non-use within how many
years of Registration?
1) 10 Years

2) 5 Years
3) 3 Years
4) 7 Years

52. Section 9 of the Trade Marks Act contains provisions regarding__________.

1) Absolute grounds for refusal
2) Relative grounds for refusal
3) Grounds for opposition
4) Grounds for infringement action

53. After a Trade Mark is accepted by the Registrar, it is ______________.

1) Advertised in the Trade Marks Journal
2) Registered in the Register of Trade Marks

3) Forwarded for payment of registration fee by the Applicant.

4) Advertised in the Government Gazette

54. Opposition of Trade Mark is ____________.

1) Objections raised by the Registrar of Trade Marks

2) Objections raised by a third party

3) Objections raised for non-payment of fees

4) Objection raised by the District Court.

 INFORMATION TECHNOLOGY ACT 2000
1. When IT Act 2000 came into effect?
A. October 17, 2000
B. October 17, 2001
C. November 11, 2000

D. November 11, 2001

2. How many schedules are there in IT Act 2000?

A. 3
B. 4
C. 6
D. 2

3. Which is the Act which provides legal framework for e-Governance in India
A. IT (amendment) Act 2008
B. Indian Penal Code
C. IT Act 2000
D. None of the above

4. Which section of IT Act deals with the legal recognition of electronic records?
A. Section 2

B. Section 5
C. Section 6
D. Section 4

5. What is/are component of IT Act 2000 ?

A. Legal Recognition to Digital Signatures
B. Regulation of Certification Authorities.

C. Digital Certificates
D. All the above
6. The section deals with legal recognition of digital signature
A. Section 3
B. Section 5
C. Section 6

D. Section 4

7. The section deals with the use of electronic records and digital signature in
Government and its agencies
A. Section 3

B. Section 5
C. Section 6
D. Section 7

8. Major amendments to IT Act 2000 was introduced in the form of IT (amendment)

Act 2008, which came into effect on
A. 01 June 2008
B. 27 October 2009
C. 27 October 2008
D. 03 July 2009

9. IT Act 2000 amended various sections of which of the following Acts?

A. Indian Penal Code 1860
B. Reserve Bank of India Act 1934
C. Indian Evidence Act 1872 & Bankers Book Evidence Act 1891
D. All of the above

10. Which among following Act is not amended in Information Technology Act 2000 ?
A. The Bankers Books Evidence Act, 1891

B. BSNL IT Policy
C. RBI Act 1934.
D. The Indian Evidence Act, 1872
11. Controller of Certifying Authorities (CCA) work under ?
A. Prime Minister office
B. Reserve Bank of India
C. Ministry of Communication & IT

D. autonomous body

12. Which Act in India focuses on data privacy and information technology?
A. Banking Regulation Act 1949
B. IT Act 2000
C. Indian Penal Code
D. IT (amendment) Act 2008

13. Which section of IT Act deals with the appointment of Controller of certifying
authorities
A. Section 17
B. Section 15

C. Section 10
D. Section 5

14. Which section of IT Act 2000 deals with the punishment for cheating by
impersonation by using computer resources?
A. Section 66D
B. Section 66C
C. Section 66B
D. Section 66F

15. Which section of IT Act deals with Hacking of computer systems and its penalties?
A. Section 65

B. Section 66
C. Section 62
D. Section 67
16. What is the punishment for hacking of computers?
A. Three year imprisonment or 10 lakh rupees penalty or both
B. Life Imprisonment
C. Three year imprisonment or 5 lakh rupees penalty or both

D. Three year imprisonment or 2 lakh rupees penalty or both

17. Which section of IT Act deals with Cyber terrorism?

A. Section 66C
B. Section 66B
C. Section 66F
D. Section 66A

18. Which section of IT Act was invalidated by Supreme Court of India

A. Section 66F
B. Section 66B
C. Section 66D
D. Section 66A

19. The date on which Supreme Court of India invalidated Section 66A of IT Act 2000:
A. 24.03.2015
B. 31.03.2015
C. 01.01.2015
D. 01.06.2015

20. What is the penalty for publishing images of a person's private parts without
consent, as per IT Act 2000?
A. 5 years imprisonment or 5 lakh rupees penalty or both
B. Life imprisonment
C. 3 years imprisonment or 2 lakh rupees penalty or both
D. None of the above

21. What is the punishment for identity theft in IT Act?

A. Two year imprisonment or 1 lakh rupees penalty or both
B. Three year imprisonment or 1 lakh rupees penalty or both
C. Three year imprisonment or 2 lakh rupees penalty or both
D. None of the above

22. What is the penalty for destroying computer source code?

A. Three year imprisonment or 3 lakh rupees penalty or both
B. Two year imprisonment or 2 lakh rupees penalty or both

C. Three year imprisonment or 5 lakh rupees penalty or both

D. Three year imprisonment or 2 lakh rupees penalty or both

23. Which are the sections of IT Act applicable for Cyber pornography?
A. 66, 66A, 66B
B. 67, 67A, 67B
C. 67, 67C, 67D

D. None of the above

24. Which section of IT Act deals with Child pornography?
A. Section 67F
B. Section 67D
C. Section 67C
D. Section 67B

25. What is the maximum penalty for damage to Computer, Computer systems,
unauthorized access, download of data, infecting with virus, denial of access etc as per
Section 43
A. Rs. 50 lakh
B. Rs.1 crore
C. Rs. 5 crore
D. Rs.75 lakh

26. Which section of IT Act 2000 propose a punishment of life imprisonment?

A. Section 66F
B. Section 66C
C. Section 66B
D. Section 66A
27. Which is the section of the IT Act deals with Credit card fraud?
A. 42, 67, 67A, 67B
B. 66, 66C, 66D
C. 43, 66, 66C, 66D

D. None of the above

28. Which of the following is an example of Intellectual property ?

A. Patent
B. Trade Marks
C. Copyright
D. All of above

29. What is the time limit for filing appeal against the order of Cyber appellate
tribunal?
A. 30 days
B. 90 days

C. 60 days
D. 45 days

30. Which is the appeal court on the orders issued by Cyber appellate tribunal?
A. Munsiff Court
B. District Court
C. High Court

D. Supreme Court

31. What is the term of the office of the presiding officer of Cyber appellate tribunal?
A. 3 years
B. 4 years
C. 6 years
D. 5 years