Practice Test : BSL101

1. 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
2. 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
(d) person to whom the proposal is made
3. 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.
4. An agreement enforceable at law is a
(a) enforceable acceptance
(b) accepted offer
(c) approved promise
(d) contract
5.Void agreement signifies
(a) agreement illegal in nature
(b) agreement not enforceable by law
(c) agreement violating legal procedure
(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. 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.
8. Every promise and every set of promises, forming the consideration for each
other, is an
(a) agreement
(b) contract
(c) offer

(d) acceptance
9. 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
10. Which is correct
(a) proposal + acceptance = promise
(b) promise + consideration = agreement
(c) agreement + enforceability = contract
(d) all the above
11. 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.
12. 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
(d) all the above.
13. An agreement to remain unmarried is
(a) valid
(b) voidable
(c) void
(d) unenforceable.
14. 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.
15. An agreement in restraint of marriage under section 26 is
(a) void
(b) voidable
(c) valid
(d) unenforceable
16. 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).
17. 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.
18. 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.
19. Parties are not competent to contract if any of them is
(a) minor
(b) insane
(c) declared unqualified
(d) all the above.
20. Which is correct
(a) proposal + acceptance = promise
(b) promise + consideration = agreement
(c) agreement + enforceability = contract
(d) all the above.
21. 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
22. 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.
23. An acceptance can be revoked
(a) at any time before the communication of acceptance is complete as against
the promisee
(b) after its acceptance comes to the knowledge of the promisee
(c) both (a) & (b)
(d) neither (a) nor (b).
24. Where both the parties to an agreement are under mistake as a matter of
fact essential to the agreement, the agreement is:
a.
Void
c. Illegal
b.
Voidable
d. not affected at all

25. Which of the following elements does not affect the free consent of the
Parties:
a. coercion
c. in-competency
b. fraud
d. undue influence
26. The agreement enforceable by law is a :
a. Promise
b. Contract

c. Obligation
d. Lawful Promise

27. When the consent to an agreement is obtained by Coercion, the agreement is

voidable at the option of:
a. Either party to the agreement
c. a party whose consent was
so obtained
b. A party who obtained the consent
d. none of these
28. As a general rule, an agreement made without consideration is:
a. Valid
c. Voidable
b. Illegal
d. Void
29. A void agreement is one which is:
a.
Valid but not enforceable
b.
Enforceable at the option of both the parties
c.
Enforceable at the option of one party
d.
Not enforceable in a court of Law
30. 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.
31. Where one party is in position to dominate the will of another and uses his
superior position to obtain the consent of the weaker party, the consent is said to
be obtained by
a. coercion
c. misrepresentation
b. fraud
d. undue influence
32. On attaining the age of majority a minors agreement:
a. Can be ratified by him
c. becomes valid
b. Can not be ratified by him
d. becomes void
33. A specific offer can be accepted by:
a. Any person
c. The person to whom
it is made
b. Any friend of offerer
d. Any friend of offeree
34. Which of the following persons do not fall under the category of persons of
unsound mind?
a.
idiot
c. drunken person
b.
lunatics
d. alien
35. An offer may lapse by:
a. Revocation
c. Counter Offer
b. Rejection of offer by offeree
d. All of these

36. When the consent to an agreement is obtained by fraudulent means, the

agreement is voidable at the option of:
a.
Either party to the agreement
c. a party whose consent
was so obtained
b.
A party who obtained the consent
d. none of these
37. A threatens to kill B if he does not agree to sell his property to him for Rs. 30
Lacs, which is actually worth more than Rs. 50 Lacs. Here Bs consent is obtained
by:
a. Fraud
c. Coercion
Undue Influence
d. None of these.
38. The consideration or object of an agreement is considered unlawful, if it is:
a. Forbidden by law
c. immoral
b.
Fraudulent
d. all of these
39. The law of contract in India is contained in:
a.
Indian Contract Act, 1872
c. Indian Contract Act,1852
b.
Indian Contract Act,1972
d. Indian Contract Act,1952
40. Moral pressure is involved in the case of:
a.
Coercion
b.
Undue Influence

c. Misrepresentation
d. Fraud

41. A contract by an idiot is:

a. Valid
b.
enforceable

c. Voidable
d. Void

42. Consideration in simple term means:

a.
Anything in return
return
b.
Everything in return

c. Something in
d. Nothing in return

43. In the contract of indemnity, the person whose loss is made good by the
another party is:
a. Indemnified
c. Indemnifier
b. Surety
d. Creditor
44. An agreement enforceable at law is a
a) enforceable acceptance
d) contract

b) accepted offer

c) approved promise

45. Every promise and every set of promise forming the consideration
for each other is a/an.
a) contract.
b) agreement.
c) offer.
d) acceptance.
46. A invites B for coffee in Coffee day Restaurant and B accepts the
invitation. On the appointed date, B goes there but A does not come. In
this case:
a) B has no remedy against A.
invitation from A.

b) B has to wait for another

c) B can sue A for not honoring his words.

the promise.

d) A has to invite B again, to keep

47. Mohan gave a newspaper advertisement for sale of goods by

auction. This amounts to..
a) an invitation to offer
b) an offer to hold such sale
c) an implied
offer
d) a general offer
48. Number of Contracts in case of Contract of Guarantee are ............
and in case of Contract of Indemnity are ................
a) 2 and 1
b) 2 and 3
c) 3 and 1
d) 3 and 2
49. A contract in which, under the terms of a contract, nothing remains
to be done by either party is known as.
a) Executed contract.
b) Executory contract.
c) Unilateral
contract.
d) None of the above.
50. When one party is in a position to dominate the will of another and
uses its superior position to obtain the consent of a weaker party, the
consent is said to be obtained by
a) Coercion

b) Undue influence

c) Fraud

d) Misrepresentation

51. Money agrees to write lyrics for a song album for Goyal Music
company for Rs. 20,00,000. After some days, while returning from his
recording, he met with an accident and died. As such the Contract
entered into by him becomes ...............
a) Void

b) Voidable

c) Illegal

d) None

52. A contract of Indemnity is really a class of .......................contract.

a) Contingent

b) Wagering

c) Voidable

d) Void

53. A contract of agency has all the essentials of a contract, with

some special features of its own.
The essentials of agency are :
a) Appointment by the Principal and Agent.
Agent to act on behalf of Principal.

b) Conferring authority on

c) Principal becomes answerable to third party for the

done by his agent.

d) All of the aboveacts

54. Agreement enforceable by law is

(a) offer

(b) acceptance

(c) contract

consideration
55. Implied Agency includes :
(a) Agency by estoppel

(b) Agency by necessity

(c) Agency by holding out

(d) All of the above

56. A contract with or by a minor is a .

(d)

(a) valid contract (b)void contract (c)voidable contract (d)voidable at the

option of either party.
57. Where the consent is caused by fraud or misrepresentation, the
contract is ..
(a) void (b) voidable at the option of aggrieved party
(c) unenforceable (d) not affected in any manner
58. Liability of Surety arises when :
(a)Principal Debtor makes a default in payment
(b)Creditor fails to recover anything from Principal Debtor
(c)Surety is reimbursed by Principal Debtor
(d) Court directs him to pay
59. Parties are not competent to contract if any of them is
..
(a) Lunatic

(b) insane

(c) declared unqualified

(d) all the

above.
60. Consent is not free when received by
(a) coercion (b) undue influence (c) Fraud (d) all of the above
61. A contract in which, under the terms of a contract, nothing remains to be
done by either party is known as.
a) Executed contract.
b) Executory contract.
c) Unilateral contract.
d) None of the above.
62.A contract in which both the parties have not fulfilled their
obligations is known as.
a) Executed contract.
b) Executory contract.
c) Unilateral contract.
d) None of the above.
63. An agreement enforceable at law is a
a) enforceable acceptance
b) accepted offer
c) approved
promise
d) contract
64. Consent is free when not caused by
(a) coercion (b) undue influence (c) Fraud (d) all of the above
65. Parties are not competent to contract if any of them
is
(a) minor
(b) insane
(c) declared unqualified
(d) all the
above.
66. In case of Contract of Guarantee, primary liability is that
of .................................... and secondary liability is that
of...............................
(a) Surety and Principal Debtor (b) Surety and Principal Creditor

(c) Principal Creditor and Surety (d) Principal Debtor

and surety

67. A contract of Indemnity is really a class of .......................contract.

(a) Contingent

(b) Wagering

(c) Quasi

(d) void

68. When the consent given to a contract under some

misrepresentation by the other party makes the contract .
(a) void
(b) voidable
(c) invalid
(d)
unenforceable
69. A contract of supari killing of a rival in modeling world is

(a) legal (b) voidable (c) void (d) unenforceable

70. Which of the following statement is false?
a.
b.
c.
d.

Generally, a stranger to a contract cannot sue

A verbal promise to pay a time barred debt is valid
Completed gifts need no consideration
No consideration is necessary to create an agency.

71. Consideration must/may move at the desire of:

a. Promisor
c. Any of these
b. Promisee
d. Any other person
72. Quotation of price is a :
a. Offer
b. Invitation to offer

c. Proposal
d. None of these

73. When the consent to an agreement is obtained by Coercion, the agreement is

voidable at the option of:
a. Either party to the agreement
obtained
b. A party who obtained the consent

c. a party whose consent was so

d. none of these

74. The number of contracts in the contract of indemnity are:

a. Three
b. Four

c. Two
d. One

75. In the contract of indemnity, the person whose loss is made good by the another
party is:
a. Indemnified
c. Indemnifier
b. Surety
d. Creditor
76. an a person who is usually of unsound mind, but occasionally of sound mind, make a
contract?
a. Yes, he can always make a contract
b. Yes, but only when he is of sound mind
c. No, he cannot make a contract
Yes, but only when is of unsound mind
77. The liability of the surety in the contract of guarantee can be:
a. Equal to the liability of the debtor
c. Less than the liability of the debtor

b. More than the liability of the debtor

d. both (a) and (c)

78. In the case of executed contracts, both the parties have:

a. Performed the obligations
c. partially performed
b. Yet to perform the obligations
d. None of these
79. When offer is made to a definite person, it is known as:
a. General offer
c. Cross Offer
b. Counter offer
d. Specific Offer
80. Which of the following statement is true?
a. Consideration must result in a benefit to both parties.
b. Past consideration is no consideration in India
c. Consideration must be adequate
d. None of the above
81. An offer may lapse by:
a. Revocation
b. Counter Offer
b. Rejection of offer by offeree
d. All of these

82. A threatens to kill B if he does not agree to sell his scooter to him Rs.1,000 only. Here
Bs consent is obtained by:
a. Fraud
c. Undue Influence

b. Coercion
d. None of these.

83. The consideration or object of an agreement is considered unlawful, if it is:

a. Forbidden by law
c. immoral
b. Fraudulent
d. all of these
84. The relationship between an agent and principal is known as:
a. Partnership
c. Limited liability partnership
b. Agency
d. None of these
85. Tick the false statement:
a. The liability of the surety in the contract of guarantee is equal to the liability of
the debtor
b. The liability of the surety in the contract of guarantee is more than the
liability of the debtor
c. The liability of the surety in the contract of guarantee is less than the liability of
the debtor
The liability of the surety can be of primary nature.
86. The person who is of unsound mind and with whom you can never contract is:
a. Lunatic
b. Intoxicated
c.
Idiot
d. drunkard
87. The law of contract in India is contained in:
a. Indian Contract Act, 1872
b. Indian Contract Act,1972

c. Indian Contract Act,1852

d. Indian Contract Act,1952

88. Which of the following acts does not fall under the categories of fraud?
a. Intentional false statements of facts
b. Active concealment of facts
c. Innocent false statement
d. Promise made without intention to perform

89. If the contract is under the effect of Bilateral mistake, then the contract is:
a. Void Contract
b. Voidable Contract

c. Quasi Contract
d. Valid Contract

90. The contract which fulfills all the essentials of the contract except registration, the
contract is:
a. Enforceable Contract
b. Void agreement

c. Valid Contract
d. Unenforceable Contract

91. The contracts which gets formed out of the circumstances are:
a. Constructive Contracts
b. Executory Contracts
c. Electronic Commerce Contracts
d. None of the above
92. Which of the following statement is false? Consideration:
a. Must move at the desire of the promisor
b. May move from promise or any
person
c.
Must be illusory
d.Must be of some value
93. Who can perform a contract?
a. Legal representatives
C. Surety

b. Promisor
d. All of the above

94. Consideration may be :

a. Past
c. Future

b. Present
d. All of these

95. Where one party is in a position to dominate the will of another and uses his superior
position to obtain the consent of a weaker party, the consent is said to be obtained by:
a. Coercion
b. Undue Influence
c. Fraud
d. Misrepresentation
96. A contract made by mistake about some foreign law is:
a. Void
b. Valid
c. Voidable
d. Illegal
97. Which of the following is not an exception to the rule- No consideration, No contract
a. Compensation for involuntary services
b. Love and
affection
c. Contract of agency
d.
Gift
98. If the contract is under the effect of Bilateral mistake, then the contract is:
a. Voidable Contract
b. Void Contract
b. Quasi Contract
d. Valid Contract

99. The one who appoints a person to make dealings and representations on his behalf
is:

a. Agent
c. Partner

100. Attempted performance means:

a. Tender
c. Unilateral Contract

b. Principal
d. Promisor
b. Executed promise
d. Bilateral Contract

101. A voidable contract is one which

a. Can be enforced at the option of aggrieved party
b. Can be enforced at the option of both the parties
c. Cannot be enforced in a court of law
d. None of these.
102. Where the consent of a party is obtained by misrepresentation, the contract is:
a. Void
b. valid

b. Voidable

d. Illegal