Objective Questions on Law of Contracts - Set 1

Q. No. 1
On the face of the ticket for a journey the words “For conditions seek back” are printed in
small print, the passenger
(a) May not take note of the conditions.
(b) Is not bound by the condition
(c) Is bound by the conditions whether he takes care to read them or not.
(d) None of above
correct answer : c
Q. No. 2
An advertisement to sell a thing by auction is
(a) An obligation
(b) A contract
(c) No offer at all
(d) An invitation to offer
correct answer : d
Q. No. 3
A letter of acceptance sufficiently stamped and duly addressed is put into course of
transmission. There is
(a) Valid contract
(b) No contract at all
(c) A contract voidable at the option of offerer
(d) A contract voidable at the option of acceptor
correct answer : a
Q. No. 4
Flaw in capacity to contract may arise from
(a) Absence of legal formalities
(b) Minority
(c) Lack of consideration
(d) Lack of free consent
correct answer : b
Q. No. 5
An agreement is
(a) Contract
(b) Offer + acceptance
(c) Offer + acceptance + consideration
(d) Offer
correct answer : c
Q. No. 6
The transactions collateral to an illegal agreement are
(a) Void
(b) Voidable at the option of the plaintiff
(c) Also tainted with illegality
(d) Not affected in any manner
correct answer : c
Q. No. 7
Compromise of disputed claims
(a) Is not permitted by law
(b) Results in a void agreement
(c) Is not a good consideration for a contract
(d) Is a good consideration for a contract
correct answer : d
Q. No. 8
A promise to compensate, wholly or in part, a person who has already voluntarily done
something for the promisor is
(a) Void
(b) Voidable
(c) Enforceable
(d) Not enforceable because it is without consideration
correct answer : c
Q. No. 9
Consideration must move at the desire of
(a) The promisee
(b) The promisor
(c) Promisor or any third party
(d) Both the promisor and the promisee
correct answer : b
Q. No. 10
Consideration
(a) May move from the pomisor
(b) Must move from the third party
(c) May move from the promisee or any other person
(d) Must move from the promisee
correct answer : c
Q. No. 11
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) Coercion
(b) Undue influence
(c) Fraud
(d) Misrepresentation
correct answer : d
Q. No. 12
A minor, by misrepresenting his age, borrows some money.
(a) He is liable to return the money
(b) He cannot be sued for fraud
(c) He can be sued for fraud
(d) None of the above
correct answer : b
Q. No. 13
If there is ‘error in causa’, the contract is
(a) Valid
(b) Illegal
(c) Voidable
(d) Void
correct answer : c
Q. No. 14
Fraud exists when it is shown that a false representation has been made
(a) Knowingly
(b) Unknowingly
(c) Unintentionally
(d) None of these
correct answer : a
Q. No. 15
Consideration in a contract
(a) Must be future only
(b) Must be present only
(c) May be present or future only
(d) May be past, present or future
correct answer : d
Q. No. 16
On attaining the age of majority a minor’s agreement
(a) Becomes valid
(b) Become void
(c) Cannot be ratified
(d) Can be ratified
correct answer : c
Q. No. 17
A promises to subscribe to a charity. The promise is a
(a) Void contract
(b) Void agreement
(c) Voidable contract
(d) Valid contract
correct answer : b
Q. No. 18
If there is ‘error in consensus’, the agreement is
(a) Valid
(b) Illegal
(c) Voidable
(d) Void
correct answer : d
Q. No. 19
Cundy Vs. Lindsay. (1878) 3 A.C. 459 case deals with
(a) Coercion
(b) Undue influence
(c) Mistake as to the nature of transaction
(d) Mistake as regards identity.
correct answer : d
Q. No. 20
A promise made without the intention of performing it amounts to
(a) Fraud
(b) Innocent misrepresentation
(c) Negligent misrepresentation
(d) Wrongful misrepresentation
correct answer : a
Q. No. 21
A person whom the agent names to act for the principal in the business of agency, under
the express or implied authority to name, is called
(a) Procured agent
(b) Agent
(c) Substituted agent
(d) Sub-agent
correct answer : c
Q. No. 22
For the acts of the substituted agent
(a) The substituted agent is not responsible to the principal
(b) The agent is not responsible to the principal
(c) The substituted agent is responsible to the principal
(d) None of the above
correct answer : c
Q. No. 23
Substituted agent is liable to the principal
(a) Along with the agent
(b) Irrespective of fraud and willful default, in all cases
(c) Only in case of fraud and willful default
(d) Both a. and c.
correct answer : b
Q. No. 24
The unlawful detention of any property of a person to obtain his consent to a contract
amounts to
(a) Coercion
(b) Undue influence
(c) Fraud
(d) Misrepresentation
correct answer : a
Q. No. 25
If a minor is included in the partnership deed for getting the benefit of the firm, the deed is
(a) Valid
(b) Void
(c) Illegal
(d) Voidable
correct answer : a
Q. No. 26
A Christian priest after perpetual vow has taken, entered into an agreement to purchase
some property for himself. He paid the advance and made an agreement in writing. This is
(a) Valid contract
(b) Void contract
(c) Voidable contract
(d) Unlawful contract
correct answer : c
Q. No. 27
A hires a horse in Delhi from B expressly agreed to march to Agr
(a) A rides with due care but marches to Chandigar instead. The horse accidentally falls
and is injured. Who is liable to make compensation a. A is liable
(b) B is liable
(c) No one liable
(d) Both are liable
correct answer : a
Q. No. 28
In case of fraud and willful wrong by the sub-agent
(a) The sub-agent and the agent both are liable to the principal
(b) The sub-agent is directly liable to the principal
(c) The agent alone is liable to the principal
(d) Both a. and b.
correct answer : b
Q. No. 29
When a person at whose option a contract is voidable rescinds it, restore such benefit to
the person from whom it was received then it called
(a) Rescission
(b) Remission
(c) Restitution
(d) Subrogation
correct answer : c
Q. No. 30
The law of contract covers the enforcement of
(a) Voluntarily created civil obligations
(b) All obligations of civil nature
(c) Obligations imposed by law
(d) Whole range of agreements
correct answer : a
Q. No. 31
The process of making a proposal is completed by ____
(a) Agreement
(b) Promise
(c) Communication
(d) Contract
correct answer : c
Q. No. 32
_____ is a starting point of a contract
(a) Agreement
(b) Enforceability
(c) Promise
(d) Proposal
correct answer : d
Q. No. 33
Proposal may be communicated
(a) By writing
(b) By words of mouth
(c) By conduct
(d) All of these
correct answer : d
Q. No. 34
The modes of communications were recognized in section
(a) 3
(b) 4
(c) 7
(d) 8
correct answer : a
Q. No. 35
Acceptance must be ______
(a) In writing
(b) In words of mouth
(c) By conduct
(d) Any of the above
correct answer : d
Q. No. 36
Which of the following is correct
(a) An offer and acceptance need not be formal
(b) Offer and acceptance can be spelt out from conduct of parties
(c) It covers not only their acts but also omissions
(d) All of these
correct answer : d
Q. No. 37
Which of the following is an implied promise to pay
(a) Bid at an auction
(b) Stepping into an omni bus
(c) Consuming eatables at a self service restaurant
(d) All the above
correct answer : d
Q. No. 38
A bid at an auction is
(a) Express offer
(b) Implied offer
(c) Not an offer
(d) Agreement to buy
correct answer : b
Q. No. 39
_____are the universally accepted process for making an agreement
(a) Offer + consideration
(b) Offer + enforceability
(c) Proposal + acceptance+consideration
(d) None of these
correct answer : c
Q. No. 40
Defendant’s nephew absconded from home. He sent his servant in searching of the boy.
When the servant had left, defendant made an offer to pay Rs.500 to any body discovering
the boy. The servant brought the boy without knowing about the offer. The Allahabad High
Court held that since there is no acceptance of the offer, it is not a valid offer in
(a) Ramji Vs. Invest Import
(b) Lalman Vs. Gauriduth
(c) Byomekh Vs. Nanigopal
(d) Surendar Vs. Kedarnath
correct answer : b
Q. No. 41
The leading case Balfour Vs. Balfour relates to
(a) Capacity of parties
(b) Acceptance of offer
(c) Communication
(d) Intention to contract
correct answer : d
Q. No. 42
A husband and wife withdrew their complaints under an agreement by which the husband
promised to pay her an allowance and she to refrain from pledging his credit. This is
(a) Valid contract
(b) Void agreement
(c) No agreement
(d) Voidable contract
correct answer : a
Q. No. 43
Owner of a motor vehicle on payment of premium cannot opt for a future date for
commencement of insurance coverage since such contract is
(a) Illegal
(b) Voidable
(c) Against public policy
(d) Future consideration
correct answer : c
Q. No. 44
Which of the following is correct
(a) If there was no reservation in signifying acceptance by conduct it must follows that offer
has been accepted by conduct
(b) If offeree had reservation in accepting offer, his conduct may not amount to acceptance
of offer. (2006 (3) KLT SN 49)
(c) A promise in writing to pay an amount, which is time barred is valid (2006 (4) KLT 779)
(d) All are correct
correct answer : d
Q. No. 45
The distinction between ‘offer’ and ‘invitation to treat’ is made in
(a) R Vs. Clarke
(b) Harvey Vs. Facey
(c) Nordenfelt Vs. Maxim Nordenfelt
(d) Lalman Vs. Gauri Dutt
correct answer : b
Q. No. 46
Which of the following is an offer
(a) Catalogue
(b) A railway time table
(c) Self service items displayed with price tags
(d) None of these
correct answer : d
Q. No. 47
Intention to contract
(a) Can be negatived impliedly by the nature of promise
(b) Cannot be negatived impliedly by the nature of promise
(c) Either a. or b.
(d) None of these
correct answer : a
Q. No. 48
The leading case Carlill Vs. Carbolic Smoke Ball Co. relates to
(a) Capacity of parties
(b) Minor’s agreement
(c) General offer
(d) Tender
correct answer : c
Q. No. 49
The above facts relates to the case law
(a) Balfour Vs. Balfour
(b) Mc Greger Vs. Mc Greger
(c) Hardly Vs. Bexandile
(d) Lindsy Vs. Cundy
correct answer : b
Q. No. 50
The test of contractual intention is
(a) What the parties had in mind
(b) What a reasonable person would think, in the circumstances
(c) Subjective
(d) None of these
correct answer : b