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 undueinfluence 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 c. Obligationb. Contract 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 obtainedb. A party who obtained the consent d. none of these

28. As a general rule, an agreement made without consideration is:a. Valid c. Voidableb. 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 offerc. The offeree makes some queryd. 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 influence32. On attaining the age of majority a minor’s 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. alien35. 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 B’s consent is obtained by:

a. Fraud c. CoercionUndue 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 c. Misrepresentation b. Undue Influence d. Fraud

41. A contract by an idiot is:a. Valid c. Voidable

b. enforceable d. Void

42. Consideration in simple term means: a. Anything in return c. Something in return b. Everything in return 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. Indemnifierb. Surety d. Creditor

44. An agreement enforceable at law is a………………………

a) enforceable acceptance b) accepted offer c) approved promise d) contract

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. b) B has to wait for another invitation from A.c) B can sue A for not honoring his words. d) A has to invite B again, to keep the promise.

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. b) Conferring authority on Agent to act on behalf of Principal.

c) Principal becomes answerable to third party for the d) All of the aboveacts done by his agent.

54. Agreement enforceable by law is……………………

(a) offer (b) acceptance (c) contract (d) 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 …………………………….

(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. Generally, a stranger to a contract cannot sue

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

71. Consideration must/may move at the desire of:a. Promisor c. Any of theseb. Promisee d. Any other person

72. Quotation of price is a :a. Offer c. Proposalb. Invitation to offer 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 c. a party whose consent was so obtainedb. A party who obtained the consent d. none of these

74. The number of contracts in the contract of indemnity are:a. Three c. Two

b. Four 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 contractb. Yes, but only when he is of sound mindc. 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 debtorb. 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 Offerb. 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 Indiac. Consideration must be adequated. None of the above

81. An offer may lapse by:a. Revocation b. Counter Offerb. 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 B’s consent is obtained by:

a. Fraud b. Coercion c. Undue Influence 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 c. Indian Contract Act,1852

b. Indian Contract Act,1972 d. Indian Contract Act,1952

88. Which of the following acts does not fall under the categories of fraud?a. Intentional false statements of factsb. Active concealment of factsc. Innocent false statementd. Promise made without intention to perform

89. If the contract is under the effect of Bilateral mistake, then the contract is:a. Void Contract c. Quasi Contractb. Voidable Contract d. Valid Contract

90. The contract which fulfills all the essentials of the contract except registration, the contract is:a. Enforceable Contract c. Valid Contract

b. Void agreement 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 b. Promisor

C. Surety d. All of the above

94. Consideration may be :a. Past b. Present

c. Future 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 Influencec. 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 contracta. 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 Contractb. Quasi Contract d. Valid Contract

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

c. Partner d. Promisor

100. Attempted performance means:a. Tender b. Executed promise

c. Unilateral Contract d. Bilateral Contract

101. A voidable contract is one which a. Can be enforced at the option of aggrieved partyb. Can be enforced at the option of both the partiesc. 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. validb. Voidable d. Illegal