- Given below are two statements :
Statement I: A contract by which one party promises to save the other from loss caused to him by the conduct
of the promisor himself or by the conduct of any other person, is called a contract of Guarantee.
Statement II: A contract to perform the promise, or discharge the liability of a third person in case of his default is called a contract of Indemnity.
In the light of the above statements, choose the most appropriate answer from the options given below :
(a) Both Statement I and Statement II are correct
(b) Both Statement I and Statement II incorrect
(c) Statement I is correct but Statement II is incorrect
(d) Statement I is incorrect but Statement II is correct - The liability of indemnifier arises:
(a) Only before the occurrence of loss
(b) Only on the occurrence of any loss to the indemnity holder
(c) When the indemnity holder compel the indemnifier to make good his loss even before he has suffered actual loss by paying off the claim
(d) None of the above - Duties of bailor include
(A) Take care of goods
(B) Bear extraordinary expenses
(C) Return accretion to the goods
(D) Indemnify the bailee
(E) Disclose known faults
Choose the correct answer from the options given blow:
(a) A, B and E only
(b) A, C and D only
(c) B, C and D only
(d) B, D and E only - Match List- I with List- II.
List-1 List- II Provision under the Indian contract Act, 1872 Relevant Section A. Contingent contract I. Section 31 B. Bailment ll. Section 15 C. Fraud Ill. Section 17 D. Coercion IV. Section 148 Choose the correct answer from the options given below:
(a) A-I, B-IV, C-III, D-II
(b) A-I, B-III, C-II, D-IV
(b) A-II, B-III, C-IV, D-I
(d) A-IV, B-III, C-I, D-II - Which one of the following statements is not correct as regards to bailment?
(a) Delivery of goods for some purpose.
(b) Return of goods after the purpose is accomplished.
(c) Goods must be movable property.
(d) The ownership is transferred to bailor to bailee. - Which of the following does not constitute bailment?
(a) Parking car in parking area and giving key to the caretaker
(b) Placing Jewellery in bank locker
(c) Money deposited in bank
(d) Seizure of goods of a trader by police - An agent is personally liable to third parties in which of the following situations?
A. If an agent acts for an undisclosed Principal
B. trade usage and customs makes agent personally liable
C. If an agent signs contract in Principal’s name
D. If an agent acts for the named Principal
E. If an agent works for a foreign Principal
Choose the correct answer from the options given below:
(a) A, B and C only
(b) A, B and E only
(c) C, D and E only
(d) B, C and D only - Which one of the following statements is incorrect?
(a) An agent can only negotiate contracts on behalf of his principal if his appointment was created via a contract
(b) If an agent is appointed to execute a deed on behalf of the principal, then the agent will usually
(c) Generally, the law does not impose any formalities upon those who wish to create an agency relationship
(d) If an agent is engaged to create an interest in land, he must be authorised to do so in writing - As per Section 191 of the Contract Act, a subagent is one ———–
(a) Who works under the main agent
(b) Who carries out the order and direction of a person under whom he works directly
(c) Who works on behalf of the main agent
(d) Employed by and acting under the control of the original agent in the business of agency - A says to B in the presence of and within the hearing of C that he is C’s agent. C remains mum. B supplied goods of Rs.1,00,000 to A taking him as C’s agent. C is responsible for the price of goods.
This is the case of agency of
(a) Necessity
(b) Ratification
(c) Power of attorney
(d) Estoppel