Mock test with questions and answers on the law of contract for law students!
1. The provisions of about communication of acceptance in various legal systems falls into which of the following categories?
A. The system of information
B. The system of declaration
C. The mixed or electric system
D. All of them
Ans: D
2. The relation of dependence may arise:
A. From a special authority or confidence committed to the donee
B. From the feebleness in body or mind of the donor
C. Either (A) or (B)
D. None of these
Ans: C
3. The right to surety to indemnity is an incident of the guarantee:
A. The principal-debtor will be liable
B. Without the necessity of any further request for all sums subsequently paid by the surety under the guarantee as money paid to the use of the principal-debtor
C. Both (A) and (B)
D. None of these
Ans: C
4. The rule of limitation in a foreign country, where the contract is made, may be set up as a defence to a suit filed in India if:
A. The rule has extinguished the contract
B. The parties were domiciled in that foreign country during the period prescribed by that rule
C. Both (A) and (B)
D. None of these
Ans: C
5. The subject-matter of Section 8 of the Indian Contract Act, 1872 is divided in to:
A. Performance of the conditions of a proposal and
B. Acceptance of any consideration for reciprocal promise which may be offered with a proposal,
C. Both (A) and (B)
D. None of these
Ans: C
6. The term law in the expression “forbidden by law” would include any enactment or rule of law for the time being in force in India which would fall under which of the following sub heads?
A. The provisions of any legislative enactment
B. The rules of Hindu or Mahomedan law
C. Other rules for the time being in force in India
D. All of them
Ans: D
7. The terms ‘benefit’ and ‘detriment’ have been used by courts in which of the following senses in Section 2 of the Indian Contract Act, 1872?
A. Act which value
B. Such acts, the performance of which is not already legal due from promise
C. Both (A) and (B)
D. None of these
Ans: C
8. The theories or juristic bases for the doctrine of frustration were evolved for justifying the departure from the doctrine of absolute contracts. The main theories are:
I. Implied term theory
II. Basis or foundation of the contracts
III. Just and reasonable solution
IV. Radical change in the obligation under the contracts
A. II, III
B. IV
C. I
D. All of them
Ans: D
9. The UNIDROIT principles expressly provide that in ascertaining the intention of parties, be it the subjective intention or the ‘reasonableness’ test, regard shall be had to which of the following circumstances:
I. Preliminary negotiation between the parties
II. Practices which the parties have established between themselves
III. The conduct of the parties subsequent to conclusion of the contract
IV. The nature and purpose of the contract
V. The meaning commonly given to terms and expressions in the trade concerned
VI. Usages
A. I, II, IV, V
B. Ill, IV, VI
C. IV, V
D. All of them
Ans: D
10. The use of the word person in Section 2 (c) of the Indian Contract Act, 1872 indicates:
A. Just a human being
B. It must be given extended sense to include governments
C. Both (A) and (B)
D. None of these
Ans: B
11. The word ‘loss or damage may be:
A. Harm to person
B. Harm to property
C. Injury to economic position
D. All of them
Ans: D
12. The word ‘signifies’ in the definition of S. 2 of the Indian Contract Act, 1872 indicates:
A. That the offer must be communicated to the person to whom it is made
B. That the offer need not be communicated to the person to whom it is made
C. Either (A) or (B)
D. None of these
Ans: A
13. Time and place for performance of promise, where time is specified and no application to be made in which of the following in the Indian Contract Act, 1872
A. Section 42
B. Section 36
C. Section 47
D. Section 40
Ans: C
14. To constitute a bailment, the actual or constructive possession of specific movable property (goods) must be vacated by:
A. Its owner or possessor (bailor)
B. His agent duly authorised for that purpose, in favour of another per son (the bailee)
C. Either (A) or (B)
D. None of these
Ans: C
15. To which of the following the lien claimable under S. 221 of the Indian Contract Act is confined to?
A. Commission
B. Disbursement
C. Services in respect of the specific property
D. All of them
Ans: D
16. Unconscionable contract is an:
A. Agreement that is so outrageously unfair to one party that a Court refuses to enforce it in a Court of law
B. Agreement that is so outrageously unfair to one party which can still be enforced it in a Court of law
C. Either (A) or (B)
D. None of these
Ans: A
17. Under Section 18 of the Indian Contract Act, 1872, misrepresentation falls under:
A. A statement of fact, which is false, would be misrepresentation if the maker believes it to be true, but which is not justified by the information he possesses
B. Any breach of duty which gains an advantage to the person committing it by misleading another to his prejudice, there being no intention to deceive
C. Causing a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement, even though done innocently
D. All of them
Ans: D
18. Under Section 55 of the Indian Contract Act a vendor has no right to make time of the essence of the contract unless:
A. The vendor is able, ready and willing to proceed to completion
B. When the vendor purports to make time of the essence of the contract, the purchaser must be guilty of such default as to entitle the vendor to rescind the contract, subject to it being done by a reasonable notice
C. Both (A) and (B)
D. None of these
Ans: C
19. Under Section 55 of the Indian Contract Act, 1872 the intention of the parties can be ascertained from:
I. The express words used in the contract
II. The nature of the property which forms the subject matter of the contract
III. The nature of the contract itself
IV. The surrounding circumstances
A. II, III
B. IV
C. I
D. All of them
Ans: D
20. Under which of the following any provision of the Indian Contract Act, 1872 would be void, if inconsistent with the fundamental rights?
A. Article 11 of the Constitution of India
B. Article 12 of the Constitution of India
C. Article 13 of the Constitution of India
D. Article 14 of the Constitution of India
Ans: C
21. Under which of the following bailee is not responsible on re-delivery to bailor without title in the Indian Contract Act, 1872?
A. Section 166
B. Section 159
C. Section 163
D. Section 160
Ans: A
22. Under which of the following circumstances as per the Special Relief Act, 1963, the Court may refuse to rescind the contract in a suit for rescission?
I. The plaintiff was has expressly or implied ratified the contract
II. Due to change in circumstances after the making of the contract (not due to the act of the defendant himself), the parties cannot be substantially restored to the positions in which they stood when the contract was made
III. Third parties have during the subsistence of the contract, acquired rights in good faith without notice and for value
IV. Only a part of the contract is sought to be rescinded and such part is not severable from the rest of the contract
A. I, III
B. II, IV
C. IV
D. All of them
Ans: D
23. Under which of the following pawnee is not to retain for debt or promise other than that for which goods pledged in the Indian Contract Act, 1872?
A. Section 174
B. Section 171
C. Section 173
D. Section 178
Ans: A
24. Unless the terms of the guarantee provide other, the surety is entitled to claim relief from the principal-debtor immediately:
A. As often as he pays anything under his guarantee as it falls due
B. And is not required to pay the whole debt due from the principal-debtor before compelling reimbursement
C. Both (A) and (B)
D. None of these
Ans: C
25. Void contract is:
A. A contract which ceases to be enforceable by law but is in effect
B. A contract which ceases to be enforceable by law is no longer enforceable
C. Either (A) or (B)
D. None of these
Ans: B
26. What are the conditions for the application of the S. 235 of the Indian Contract Act?
I. The agent has made an untrue representation that he is authorised agent of another (which may also be a representation as to the extent of authority of the agent)
II. The representation relates to fact
III. The third party has been misled or induced to deal with the agent on the faith of such representation
IV. The principal has repudiated or refused to ratify the transaction
V. The third party has suffered a loss in consequence
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans: D
27. What is the purpose of the rule of mitigation?
A. To prevent the waste of limited resources in society which forces the innocent party, the plaintiff to find a substitute after the defendant’s breach
B. To enable the defendant to commit efficient breach of contract where the defendant deliberately would break his contractual relationship for a better opportunity
C. Both (A) and (B)
D. None of these
Ans: C
28. When a statute clearly covers a case, it is hardly necessary to refer to decisions. In which of the following cases it was so upheld?
A. Lala Kapurchand Godhav. MirNawab Himayatalikhan Azamjah
B. State of Madras v. Gannon Durkerley & Co. Ltd.
C. Firm Kanhaiyalal v. Dineshchandra
D. Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas and Co.
Ans: A
29. When did the Indian Contract Act, 1872 come into force?
A. September 1
B. September 5
C. September7
D. September 10
Ans: A
30. When the guarantee is expressed to be a continuing guarantee and to apply to the balance for time-to- time owing by the principal-debtor to the creditor times runs:
A. Only from the date when each of such balance is constituted by the excess of total debits over total credits
B. Not from the date when each advance is made to the principal-debtor
C. Either (A) or (B)
D. None of these
Ans: A
31. Where a contract is one of guarantee:
A. The surety need not be called upon to pay unless the principal-debtor has committed a default
B. The surety is entitled to all the rights, viz, of discharge, subrogation of securities, indemnity from the principal-debtor, etc. provided in ss. 133 to 145; though an indemnifier is entitled to rights given by ss. 140 and 141
C. Both (A) and (B)
D. None of these
Ans: C
32. Where the bailment is for hire, it may be:
I. Hiring the use of goods
II. Hiring the use of labour or work on or with regard to the goods
III. Hiring of custody i.e. of services in keeping the goods
IV. Hiring of carriage of goods
A. I, II
B. II, IV
C. Ill, IV
D. All of them
Ans: D
33. Where the law is codified, it is of little avail enquire what is the law apart from such codification. The code itself must be looked to as the guide in the matter. This refers to which of the following cases:
A. Burn & Co. v. McDonald
B. Produce Brokers Co. Ltd. v. Olympia Oil and Cake Co. Ltd.
C. Moult v. Halliday
D. Llyod v. Guibert
Ans: A
34. Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue the seller for:
A. Damages for non-delivery
B. Specific performance subject to the provisions of the Specific Relief Act, 1963
C. Breach of warranty in which event the buyer may set up against the seller such breach in diminution or extinction of the price or sue the seller for damages for breach of warranty
D. All of them
Ans: D
35. Which of the deals with the effect of novation, rescission and alteration of contract in the Indian Contract Act, 1872?
A. Section 68
B. Section 50
C. Section 61
D. Section 62
Ans: D
36. Which of the following Amendment Acts inserted Section 19A into the Indian Contract Act?
A. Indian Contract (Amendment) Act, 1899 (6 of 1899)
B. Indian Contract (Amendment) Act, 1899 (7 of 1899)
C. Indian Contract (Amendment) Act, 1899 (8 of 1899)
D. Indian Contract (Amendment) Act, 1899 (9 of 1899)
Ans: A
37. Which of the following are essential conditions of pledge?
A. Bailment of goods
B. Bailment by way of security
C. Security of payment of debt
D. All of them
Ans: D
38. Which of the following are the conditions for the application of Section 70 of the Indian Contract Act, 1872?
A. The goods are to be delivered lawfully or something has to be done for another person lawfully
B. The thing done or the goods delivered must be done or delivered without intention to do so gratuitously
C. The person to whom goods are to delivered enjoys the benefit thereof
D. All of them
Ans: D
39. Which of the following are the requirements for the application of the provisions of Section 69 of the Indian Contract Act, 1872?
A. The plaintiff must have made an actual or virtual payment of money
B. The plaintiff must have been compelled to pay this money to a third party
C. The defendant must have been legally liable to pay the third party. Though the plaintiff would usually stand in some kind of relationship to the person for whom he paid, no relationship of privity is necessary to give a right of action
D. All of them
Ans: D
40. Which of the following binds the principal under S. 229 of the Indian Contract Act?
A. Notice or intimation given to an agent
B. Knowledge of any fact material to such transaction acquired by the agent
C. Either (A) or (B)
D. None of these
Ans: C
41. Which of the following cases S. 235 of the Indian Contract Act, 1872 does not apply?
A. The case of a man who represents that he has authority from another when he has no authority whatever
B. The case of a man who represents that he has certain authority from another when he has authority of another description
C. The case of an agent whose authority is terminated without his knowledge
D. Both (A) and (B)
Ans: D
42. Which of the following conditions are essential before the application of the second paragraph of Section 56 of Indian Contract Act, 1872?
A. A valid and subsisting contract before the parties
B. There must be some part of the contract yet to be performed
C. The contract after it is entered into becomes impossible of performance
D. All of them
Ans: D
43. Which of the following damages are punitive in nature?
A. Aggravated damages
B. Exemplary damages
C. Both (A) and (B)
D. None of these
Ans: B
44. Which of the following deals with “Continuing guarantee” in the Indian Contract Act, 1872?
A. Section 129
B. Section 126
C. Section 123
D. Section 130
Ans: A
45. Which of the following deals with “when agent cannot delegate” in the Indian Contract Act, 1872?
A. Section 190
B. Section 191
C. Section 185
D. Section 181
Ans: A
46. Which of the following deals with “when principal may revoke agent’s authority” in the Indian Contract Act, 1872?
A. Section 203
B. Section 205
C. Section 192
D. Section 204
Ans: A
47. Which of the following deals with agent’s accounts in the Indian Contract Act, 1872?
A. Section 211
B. Section 219
C. Section 213
D. Section 210
Ans: C
48. Which of the following deals with agent’s duty on termination of agency by principal’s death or insanity in the Indian Contract Act, 1872?
A. Section 200
B. Section 203
C. Section 209
D. Section 204
Ans: C
49. Which of the following deals with agent’s duty to pay sums received for principal in the Indian Contract Act, 1872?
A. Section 211
B. Section 219
C. Section 218
D. Section 210
Ans: C
50. Which of the following deals with agreement in restraint of marriage void in the Indian Contract Act, 1872?
A. Section 22
B. Section 26
C. Section 19
D. Section 20
Ans: B
51. Which of the following deals with agreement to do impossible act in the Indian Contract Act, 1872?
A. Section 52
B. Section 56
C. Section 55
D. Section 59
Ans: B
52. Which of the following deals with agreement void where both parties are under mistake as to matter of fact in the Indian Contract Act, 1872?
A. Section 14
B. Section 18
C. Section 19
D. Section 20
Ans: D
53. Which of the following deals with agreements by way of wager, void in the Indian Contract Act, 1872?
A. Section 22
B. Section 30
C. Section 19
D. Section 20
Ans: B
54. Which of the following deals with agreements void, if consideration and objects unlawful in part in the Indian Contract Act, 1872?
A. Section 22
B. Section 28
C. Section 19
D. Section 24
Ans: D
55. Which of the following deals with communication, acceptance and revocation of proposals in the Indian Contract Act, 1872?
A. Section 1
B. Section 2
C. Section 3
D. Section 4
Ans: C
56. Which of the following deals with contract caused by mistake of one party as to matter of fact in the Indian Contract Act, 1872?
A. Section 14
B. Section 22
C. Section 19
D. Section 10
Ans: B
57. Which of the following deals with definition of “Undue influence” in the Indian Contract Act, 1872?
A. Section 14
B. Section 18
C. Section 19
D. Section 16
Ans: D
58. Which of the following deals with Effect of mistakes as to law in the Indian Contract Act, 1872?
A. Section 21
B. Section 18
C. Section 19
D. Section 10
Ans: A
59. Which of the following deals with enforcement of contracts contingent on an event happening in the Indian Contract Act, 1872?
A. Section 22
B. Section 28
C. Section 19
D. Section 32
Ans: D
60. Which of the following deals with how revocation of proposal is made in the Indian Contract Act, 1872?
A. Section 2
B. Section 6
C. Section 3
D. Section 4
Ans: B
61. Which of the following deals with liability of co-sureties bound in different sums in the Indian Contract Act, 1872?
A. Section 149
B. Section 135
C. Section 147
D. Section 140
Ans: C
62. Which of the following deals with reimbursement of person paying money due by another, in payment of which he is interested in the Indian Contract Act, 1872?
A. Section 68
B. Section 50
C. Section 69
D. Section 59
Ans: C
63. Which of the following deals with skill and diligence required from agent in the Indian Contract Act, 1872?
A. Section 211
B. Section 212
C. Section 215
D. Section 210
Ans: B
64. Promises, express or implied are dealt under which of the following of the Indian Contract Act, 1872?
A. Section 9
B. Section 2
C. Section 3
D. Section 4
Ans. (A)
65. Promisor not bound to perform, unless reciprocal promise ready and willing to perform is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 51
B. Section 50
C. Section 55
D. Section 59
Ans. (A)
66. Quasi or Constructive Contracts is one where an implied contract has also been applied to a class of obligations which are imposed or created by law without regard to the assent of the party bound:
A. On the ground that they are dictated by reason and justice
B. Which are allowed to be enforced by an action ex contractu, for there is no agreement
C. But they are clothed with the semblance of contract for the purpose of remedy
D. All of them
Ans. (D)
67. Reciprocal contract is:
A. A contract in which the consideration consists of mutual promises
B. A bilateral agreement
C. both (A) and (B)
D. None of these
Ans. (C)
68. Reimbursement under Section 69 of the Indian Contract Act, 1872 claimed ___________ from the date on which the money was paid.
A. within a year
B. within two years
C. within three years
D. within three and a half years
Ans. (C)
69. Relation between principal and person duly appointed by agent to act in business of agency
A. Section 180
B. Section 190
C. Section 185
D. Section 194
Ans. (D)
70. Representees may be:
A. persons to whom the representation is directly made and their principals
B. persons to whom the representor intended the representation to be passed
C. members of class at which the representation was directed
D. All of them
Ans. (D)
71. Right of person dealing with agent personally liable is discussed under which of the following in the Indian Contract Act, 1872?
A. Section 238
B. Section 222
C. Section 236
D. Section 233
Ans. (D)
72. Right of principal when agent deals, on his own account, in business of agency without principal’s consent is dealt under which of the following in the Indian Contract Act, 1872?
A. Section 211
B. Section 219
C. Section 217
D. Section 215
Ans. (D)
73. Section 11 of the Indian Contract Act, 1872 deals with which of the following?
A. personal capacity arising from age
B. personal capacity arising from soundness of mind
C. personal capacity arising from the provisions of law
D. All of them
Ans. (D)
74. Section 127 provides that ______________ is sufficient consideration for the guarantee.
A. anything done
B. a promise made for the benefit of the principal-debtor
C. either (A) or (B)
D. None of these
Ans. (C)
75. Section 128 of the Indian Contract Act, 1872 explains the quantum of surety’s obligation:
A. When the terms of the contract do not limit it
B. When the terms of the contract limit it
C. either (A) or (B)
D. None of these
Ans. (A)
76. Section 134 of the Indian Contract would not apply where the release or discharge:
A. is not caused at the instance
B. is not caused by any act of the creditor
C. either (A) or (B)
D. None of these
Ans. (C)
77. Section 135 of the Indian Contract Act, 1872 deals with:
A. The case in which the surety is discharged by a contract between the creditor and the principal-debtor, entered into without the surety’s consent, to give time to, or not to sue, the principal-debtor
B. The case of mere forbearance to sue as distinguished from forbearance springing from a contract and provides that the surety shall not be discharged in such a case
C. both (A) or (B)
D. None of these
Ans. (C)
78. Section 13 8 of the Indian Contract Act, 1872 is a necessary consequence of the principle laid down in___________ and must be taken as a deliberate extension of a rule which in the common law
A. S. 44; is limited to the case of co-sureties contracting severally and not jointly
B. S. 44; is limited to the case of co-sureties contracting severally
C. S. 44; is limited to the case of co-sureties contracting jointly
D. None of these
Ans. (A)
79. Section 139 of the Indian Contract Act, 1872 is a residual section, the object of which is to:
A. Ensure that no arrangement different from that contained in the surety’s contract is forced upon him
B. Ensure the surety, if he pays the debt, has the benefit of every remedy which the creditor has against the principal-debtor
C. both (A) and (B)
D. None of these
Ans. (C)
80. Section 17(1) defines which of the following ingredients?
I. There should be a suggestion as to a fact
II. The fact suggested should not be true
III. The suggestion should have been made by a person who does not believe it to be true
IV. The suggestion should be made with intent either to deceive or to induce the other party to enter into contract
A. I, II, IV
B. II, IV
C. III. IV
D. All of them
Ans. (D)
81. Section 201 of the Indian Contract Act is not exhaustive. An agency may be terminated by other modes such as:
I. my mutual agreement
II. completion of the term of agency by expiry of time agreed upon
III. destruction of the subject-matter of the agency
IV. the agency becoming subsequently unlawful
V. Dissolution of the principal firm
A. I, II
B. II, IV
C. Ill, V
D. All of them
Ans. (D)
82. Section 202 of the Indian Contract Act, 1872 does not require that the documents authorising the agent:
A. contain reference to the interest of the agent secured by the document
B. give the power to appropriate the amounts collected towards any debt due to the agent
C. either (A) or (B)
D. None of these
Ans. (C)
83. Section 227 of the Indian Contract Act, 1872, provides that where the agent exceeds the authority and does certain acts, the principal would be bound only by those acts which are authorised, provided:
A. they can be separated from unauthorised acts
B. they cannot be separated by those acts that are beyond authorisation
C. both (A) and (B)
D. None of these
Ans. (C)
84. Section 27 of the Specific Relief Act gives power to the Courts to adjudge rescission of a contract where a contract is unlawful:
A. for causes not apparent on its face
B. the defendant is more to blame than the plaintiff
C. both (A) and (B)
D. None of these
Ans. (C)
85. Section 39 deals with:
A. refusal or renunciation by the promisor to perform
B. disabling himself from performing the promise in its entirety
C. either (A) or (B)
D. None of these
Ans. (C)
86. Section 41 of the Indian Contract Act applies to cases of:
A. assignment
B. subrogation
C. both (A) and (B)
D. None of these
Ans. (A)
87. Section 65 of the Indian Contract Act, 1872 provides that when the contract becomes void, any person who has received any advantage under it is:
A. bound to restore it
B. make compensation for it to the person from whom it was received
C. either (A) or (B)
D. None of these
Ans. (C)
88. Section 69 of the Indian Contract Act, 1872 embodies which of the following doctrines?
A. Doctrine of frustration
B. Doctrine of unjust enrichment
C. Doctrine of implied contract
D. None of these
Ans. (B)
89. Section 72 of the Indian Contract Act, 1872 has been restricted to cases of payment of delivery:
A. made by mistake
B. made under coercion
C. either (A) or (B)
D. None of these
Ans. (C)
90. Section 74 of the Indian Contract Act, 1872 applies to:
A. Compromise decrees
B. It is open to a court executing such decree to go behind it if it contains a stipulation which is by way of penalty
C. both (A) and (B)
D. None of these
Ans. (C)
91. Section 74 of the Indian Contract Act, 1872 requires proofs of:
A. general damages
B. actual or quantum of damages
C. either (A) or (B)
D. None of these
Ans. (A)
(a) void
(b) valid
(c) voidable
(d) unenforceable.
Ans. (b)
93. An obligation under a contract stands discharged:
(a) by proper performance
(b) by dispensation with the performance
(c) by death of the contracting party if the contract is personal in nature
(d) all the above.
Ans. (d)
94. Under assignment of contract:
(a) benefits under the contract can be assigned without the consent of other party
(b) burden under the contract cannot be assigned without the consent of other party
(c) both (a) & (b)
(d) neither (a) nor (b).
Ans. (c)
95. In cases of refusal to perform by one party, the other party:
(a) can ignore the notice of refusal for the time being and wait till the time when the contract is to be executed
(b) can treat the repudiation as wrongful putting an end to the contract
(c) can waive his right to rescission by acquiescence
(d) all the above.
Ans. (d)
96. A contract is not frustrated:
(a) by commercial impossibility
(b) by imposition of government restrictions or orders
(c) by destruction of subject matter of contract
(d) all the above.
Ans. (a)
97. Under section 73 of the Contract Act:
(a) special damages cannot be claimed
(b) special damages can be claimed if the party breaking the contract is made known of the special circumstances at any time before the breach
(c) special damages can be claimed if the party breaking the contract is made known of the special circumstances at the time of contract
(d) none of the above.
Ans. (c)
98. Section 73 of the Contract Act applies to contract:
(a) for sale of moveable properties
(b) for sale of immoveable properties
(c) both (a) & (b)
(d) none of the above.
Ans. (c)
99. In cases of general offer, for a valid contract:
(a) the acceptor need not have the knowledge of the offer
(b) the acceptor must have the knowledge of the offer before acceptance by performance
(c) the acceptor may acquire the knowledge of the offer after the performance of the condition amounting to acceptance
(d) none of the above.
Ans. (b)
100. The principle, performance of a condition is a sufficient acceptance without notification is contained in:
(a) section 8
(b) section 7
(c) section 6
(d) section 9.
Ans. (a)
(a) if the offer is not made to an ascertained person
(b) if the offer is made to an ascertained person
(c) if the acceptance is made by an unascertained person
(d) if the acceptance is made by an ascertained person.
Ans. (c)
102. An acceptance containing additions, limitations or other modifications shall amount to:
(a) rejection of the offer
(b) a valid acceptance
(c) a counter offer
(d) both (a) & (c).
Ans. (d)
(a) a concluded contract arises immediately
(b) a concluded contract arises only when an order is placed on the basis of tender
(c) the tender is converted into a standing offer
(d) both (b) & (c).
Ans. (d)
(a) destroys the very basis of the contract & the clause is void
(b) does not destroy the basis of the contract & the clause is valid
(c) makes the entire contract void
(d) makes the contract voidable.
Ans. (b)
105. Presumption of undue influence can be raised in cases of:
(a) apparently unconscious bargaining
(b) relationship of parties being such that one party is in a position to dominate the will of the other
(c) contract with pardanashin lady
(d) all the above.
Ans. (d)
106. Mere silence is not fraud unless:
(a) there is a duty to speak
(b) the silence is deceptive
(c) there is a change in the circumstances to be brought to the notice of other party
(d) all the above.
Ans. (d)
107. Frustration of contract implies:
(a) commercial hardship
(b) physical impossibility due to disappearance of the subject matter of the contract or the object has failed to materialise
(c) both (a) & (b)
(d) neither (a) nor (b) nor (c).
Ans. (b)