- Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R :
Assertion A: Mohit agrees to pay Nilesh Rs.1,000 in consideration Nilesh agrees to write for him 100 pages within five minutes. This is not a valid contract.
Reason R: An agreement to do an act, impossible in itself is void.
In the light of the above statements. choose the most appropriate answer from the options given below :
(a) Both A and R are correct and R is the correct explanation of A
(b) Both A and R are correct but R is OT the correct explanation of A
(c) A is correct but R is not correct
(d) A is not correct but R is correct - Which one of the following statement is correct?
(a) The Indian Contract Act, 1872, is a private law.
(b) The rights and duties of parties to a contract are not limited.
(c) The provisions of the Indian Contract Act, 1872, are a complete code.
(d) Law takes congnizance of all rights and duties decided by the parties to contract. - Given blow are two statements:
Statement I: Display of good by a shopkeeper with prices marked on them, is not an offer but an invitation to the public to make an offer to buy the goods.
Statement II: Price quotations, catalogues and advertisements in newspaper for sale of an article do constitute a valid offer
In the light of the above statement choose the most appropriate answer from the options given blow:
(a) Both statement I and II are correct
(b) Both statement I and II are incorrect
(c) Statement I is correct but statement II is incorrect
(d) Statement II is correct but statement I is incorrect - Identify which of the following statements is/are true?
A. There can be a stranger to a contract and consideration.
B. There can be a stranger to a contract.
C. There can be a stranger to consideration.
D. There cannot be a stranger to any contract.
(a) A is true
(b) D is true
(c) B is true
(d) C is true - Which of the following is not an exception to the rule that an agreement without consideration is void? (a) A promise to compensate for a voluntary act
(b) A promise of gift out natural love and affection
(c) A promise of donation in writing
(d) A promise to pay a time – barred debt - Given below are two statements.
One is labelled as Assertion (A) and other is labelled as Reason (R):
Assertion (A): Minor borrowed Rs.10,000 on a fraudulent representation that he was major. Creditor sues the minor and recovered the money.
Reason (R): An agreement with minor is void ab initio. A minor is not liable to repay any money that he might have received under void contract.
In the reference of these statements, choose the correct answer from the options given below:
(a) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is the correct explanation of (A)
(c) Both (A) and (R) are false
(d) (A) is false but (R) is true - A minor takes a loan of Rs. 4,000/- from ‘B’ during his minority. On attaining majority, he applies to ‘B’ for a further loan of Rs. 3,000/- ‘B’ gives this loan and obtains from ‘A’ a combined promissory note of Rs. 7,000/- For the two loans. This is considered as:
(a) Void contract
(b) Valid contract
(c) Illegal contract
(d) Unilateral contract - In which of the following cases, the agreement is void ab-initio?
A. Mistake is caused by fraud or misrepresentation
B. Mistake as to the identity of person contracted with
C. Mistake as to the nature and character of a written document
D. Bilateral mistake
E. Unilateral mistake
Choose the correct answer from the options given below:
(a) C, D, E only
(b) A, C, E only
(c) B, A, C only
(d) D, E, B only - Which of the following statement is not correct?
(i) A threat to commit suicide does not amount to coercion
(ii) Undue influence involves use of physical pressure
(iii) Ignorance of law is no excuse
(iv) Silence always amounts to fraud
(a) (i) and (ii)
(b) (i), (ii) and (iii)
(c) (i), (ii) and (iv)
(d) (ii), (iii) and (iv) - A contract is said to be discharged by rescission:
A. When terms of a contract are altered
B. When a party makes novation of a contract
C. When an aggrieved party exercises his option to avoid the contract
D. When a party to a contract waives his rights under the contract
E. Where none of the parties has performed its part for a long time and no other party has objected against it
Choose the correct answer from the options given below:
(a) A, D and E only,
(b) B and D only,
(c) B, C and E only,
(d) C and E only, - Match the List I with List II:
List I
(A) Ordinary damages
(B) Special damages
(C) Exemplary damages
(D) Nominal damages
List II
(I) Never granted by way of compensation for the loss.
(II) They are quite heavy in amount and are awarded by way of punishment only.
III) Arise in the ordinary course of events from the breach of contract
(IV) The constitute indirect loss suffered by the aggrieved party on account of breach of contract.
Choose the correct answer from the options given below:
(a) (A)- (III), (B) – (IV), (C)- (II), (D) – (I)
(b) (A)- (IV), (B) – (III), (C)- (II), (D) – (I)
(c) (A)- (I), (B) – (II), (C)- (IV), (D) – (III)
(d) (A)- (II), (B) – (I), (C)- (III), (D) – (IV) - A claim for ‘quantum meruit’ cannot succeed:
(a) When a divisible contract is partly performed.
(b) When an indivisible contract for a lumpsum is partly performed.
(c) When a contract is discovered to be unenforceable due to some technical defect.
(d) In the case of breach of contract, the aggrieved party can claim reasonable compensation for what he has done under the contract. - The reasons which transform a valid contract into a void contract are given in List II while the example of each reason is given in List I.
Match List I with List II.
List I (Examples of transforming a valid contract into a void contract)
A. A and B contract to marry each other. Before the time fixed for the marriage, A goes mad.
B. A agrees to sell B 100 bags of wheat at Rs.1650 per bag. Before delivery, the Government bans private trading in wheat.
C. A contracts to give Rs.1000 as loan to B, if B marries C. C dies without being married to B.
D. A threatening to murder B’s son, makes B agrees to sell his car worth Rs.15,00,000 for a sum of Rs.5,00,000 only. B’s consent is not free and he may either affirm or reject the contract. And B decides to rescind the contract.
List II
I. Contract contingent
II. Repudiation of a voidable contract
III. Supervening impossibility
IV. Subsequent illegality
Choose the correct answer from the options given below:
(a) A-I, B-II, C-III, D-IV
(b) A-II, B-III, C-I, D-IV
(c) A-III, B-IV, C-II, D-I
(d) A-III, B-IV, C-I, D-II - In which of the following cases a claim is not enforceable on the ground of quantum meruit?
(a) A is engaged by B to write a book to be published in instalments in weekly magazine. The magazine is abandoned after a few issues
(b) A is employed as a managing director in a company. After he renders service for sometime it is found that the directors were not qualified to appoint him as such
(c) A undertakes to build a house for B for Rs. 25,000, but after having done half the work he abandons the contract. B afterwards completes the house
(d) A decorates B’s flat and fits a wardrobe and a book –case for a lump sum of Rs. 15,000. The work is done But B complaints of faulty workmanship - Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: Quasi-contracts are not contracts in the real sense of the term.
Reason R: Quasi-contracts are implied-in-law contracts where parties involved do not intend to create a contract.
In the light of the above statements, choose the correct answer from the options given below:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true - The law relating to “Quasi-Contracts” is based on _______.
(a) Absence of agreement between the parties.
(b) The rights against a particular person.
(c) Principles of public policy and morality.
(d) Principles of equity justice and good conscience - Nirmal a professional singer enters into a contract with new Mumbai Opera House for a sum of Rs.20,000 for one hour. This sum was paid to Nirmal in advance. On the day of programme Nirmal meets an accident and is unable to sing. Decide whether:
(a) Nirmal must refund the advance money of Rs.20,000 paid by Opera House.
(b) Nirmal need not refund the advance money of Rs.20,000 paid by Opera House.
(c) Opera House will compel Nirmal to sing
(d) Nirmal should enter into a new contract for singing at the Opera House. - Vindictive damages are often referred to as
(a) Incidental damages
(b) Punitive damages
(c) Nominal damages
(d) Consequential damages - In which of the following cases, the Doctrine of Supervening impossibility will apply?
(a) Commercial Impossibility,
(b) Difficulty in performance,
(c) Impossibility known to the parties at the time of making of the contract
(d) Strikes, Locks-outs, and civil disturbances, - Which of the following relationship raise presumptions of undue influence?
(A) Parent and child
(B) Doctor and patient
(C) Husband and wife
(D) Fiance and fiancee
(E) Creditor and debtor
Choose the correct answer from the options given blow:
(a) A, B and C only
(b) A, B and D only
(c) A, B and E only
(d) B, C and D only - Given below are two statements: One is balled as Assertion A and the other is labeled as Reason R
Assertion A: A, the owner of a ship by fraudulently representing her to be seaworthy induces B, on underwriter to insure the ship.
Reason R: B can obtain cancellation of the policy as it is a fraud on account of fraudulent misrepresentation under the contract act.
In the light of the above statements, choose the correct answer from the options given below:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true and R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true - The essential of a valid acceptance does not include:
(a) Acceptance towards completion of unlawful act.
(b) Acceptance must be unconditional
(c) Acceptance must be absolute
(d) Acceptance must be communicated - Consideration, an essential element in the formation of a valid contract, may be identified as.
(a) The need for transparency in the contract
(b) The intention of the parties to be legally bound
(c) A balance in the terms of the agreement
(d) The ‘bargain’ element of a contract - “A contract in which only one party has still to fulfill his obligation, while the other party has already fulfilled his own at time of the formation of contract itself.” Is known as-
(a) Unilateral contracts
(b) Valid contract
(c) Void contract
(d) Bilateral contracts - In the words of ………………., ‘‘Law is the body of principles recognized and applied by the state is the administration of justice’’.
(a) Salmond
(b) Woodrow Wilson
(c) Sir William Anson
(d) Pallock