TEST NUMBER 2

INDIAN CONTRACT ACT-UGC-NET 2023

 

1. Indian Contract Act: Goods displayed in showcase of a shop with price tag is -

A.Invitation to offer

B.Counteroffer

C.Communication

D.None of these

 

2. X' in consideration of Rs. 10,000 lent by Y & Z, provides Y & Z jointly to repay them that sum with interest on a specified day. Y dies. The right to claim the performance

A.Is available to Y's representatives alone

B.Is available to Z alone

C.Is available to Y's representatives & Z both

D.Is available to Y's representatives & after the death of Z, his representatives

 

3. Moses v. Macferlan (1555-1774) is a case relating to

A.Theory of unjust enrichment

B.The right of lien

C.Test of agency

D.Doctrine of frustration

A. Theory of unjust enrichment

4. Which of the following act will not amount to 'fraud' within the meaning of Section 17 of The Indian Contract Act?

A.The active concealment of a fact by one having knowledge or belief of the fact

B.A promise made without any intention of performing it

C.The suggestion, as a fact, of that which is true, by one who does believe it to be true

D.None above

 

5. An agreement in restraint of trade under Section 27 of the Indian Contract Act, 1872 is

A.Valid

B.Voidable

C.Void

D.Enforceable

 

6. The doctrine of impossibility of performance rendering contracts void is based on

A.Implied term

B.Just & reasonable solution

C.Supervening impossibility

D.Unjust enrichment

 Discuss in Board Save for Later

 

7. 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

 Discuss in Board Save for Later

 

8. A agrees to pay 'B' a sum of money, if 'B' marries 'C'. 'C' marries 'D'. The agreement is:

A.Void

B.Voidable

C.Legal

D.Illegal

 

9. An authority given by two or more principals can be terminated

A.By notice of revocation or renunciation given by or to all the principals

B.By notice of revocation or renunciation given by or to anyone of the principals

C.By notice of revocation or renunciation given by or to both the principals if there are only two principals

D.None of the above

 10. When the court is unable to assess damages, the aggrieved party may be awarded:

A.Nominal damages

B.Exemplary damages

C.Actual damages

D.Liquidated damages

 

12. Which one of the following is a contingent contract?

A.A' insures his factory against damage or destruction by fire

B.A' sells his property subject to the condition that the property will be reconvened to him on repayment of price with interest

C.A guard is appointed at a swimming pool for the sole purpose of rescuing drowning persons

D.A borrower solemnly promises to pay off the lender when the borrower will be in funds

 

13. 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 and B

D.Neither A nor B

 

14. Contract Act- A promise to pay time barred debt is

A.Not enforceable

B.Enforceable at the discretion of debtor

C.Enforceable

D.None of the above

 

15. Which one of the legal propositions is correct?

A.It is necessary for a contract to be valid that the consideration should be adequate

B.Inadequacy of consideration does not affect the validity of the agreement

C.Inadequacy of consideration renders the contract void ab initio

D.An agreement made on account of natural love and affection, without consideration is void

 

16.  A contingent contract is:-

A.Dependent or conditional upon the happening or non-happening of a future event or contingency

B.Dependent or conditional upon the happening of a future event or contingency

C.Independent or unconditional contract

D.None of the above

 

17. Under the Contract Act, if the existing cause of action gets substituted by new cause of action arising out of agreement, then

A.The admiralty claim is maintainable

B.The admiralty daim is not maintainable

C.Admiralty claim is superseded by other claims

D.Changes in cause of action does not affect admiralty claim

 

18. Assertion (A): A stranger to a contract cannot enforce the contract.
Reason (R): He is not party to contract and can not take benefit.

A.(A) and (R) both are true and (R) is correct explanation of (A)

B.(A) and (R) both 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

 

19. 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 promise

C.Both A and B

D.Neither A nor B

 

20. Match List-I with List-II and select the correct answer by using the given below the lists :

List-I	List-II
a. A Railway Time Table	1. Is invitation to offer
b. Public Notification for Tender	2. Is a general offer
c. Picking up an article from shelves And putting it in his basket in a 'Self-service Mall'	3. Is acceptance of an offer
d. 'A' says to 'B' That if 'A's offer is not accepted, 'B' should say 'No' immediately 'B' keeps silent	4. It is not he acceptance of the offer

A.a-2, b-1, c-4, c-3

B.a-1, b-2, c-3, c-4

C.a-4, b-2, c-1, c-3

D.a-3, b-4, c-2, c-1

 

22. Where the rate of interest prescribed in case of breach is too high, the Court can interfere

A.On the proof of coercion

B.On the proof of undue influence

C.On the satisfaction that the stipulation is by way of penalty

D.On the ground of equity

 

23. The obligation to restore advantage in a void agreement is provided by

A.Section 65 of the Indian Contract Act, 1872

B.Section 60 of the Indian Contract Act, 1872

C.Section 63 of the Indian Contract Act, 1872

D.Section 68 of the Indian Contract Act, 1872

 

24. Which of the following is correct

A.Pledge made by a mercantile agent is valid

B.Pledge made by a person in possession under voidable contract is valid

C.Pledge by a person having a limited interest is valid to the extent of that interest

D.All the above

 

25. Match List I containing with List II containing the important principles used in deciding these cases and choose the correct options from the given below:

List-I	List-II
a. Durga Prasad v. Baldeo	1. The other party has done nothing in response to unilateral promise and hence no consideration.
b. Abudl Aziz v. Masum Ali	2. No stranger to the consideration can take advantage of a contract, although made for his benefit.
c. Dutton v. Poole	3. Act was not done at the desire of the promisor and hence no consideration.
d. Tweddle v. Atkinson	4. The agreement may be enforced by the third person for whose benefit the agreement was made.

A.a-3, b-2, c-1, d-4

B.a-1, b-3, c-4, d-2

C.a-3, b-1, c-4, d-2

D.a-4, b-1, c-2, d-3

 

26. When a sub-contractor had under-taken some part of the work in connection with the project which was entrusted to contractor, he cannot be treated as

A.Agent

B.sub-agent

C.Sub-contractor

D.None of the above

 

27. In a contract consideration could be supplied by . . . . . . . . :

A.Only the promisee

B.Even the promisor

C.Only by parties to contract

D.Even strangers to contract

 

28. In Indian Contract Act, Contingent contract is defined under

A.Section 30

B.Section 31

C.Section 37

D.Section 36

 

29. Contract is defined as agreement enforceable by law, vide Section . . . . . . . . of the Indian Contract Act.

A.2(e)

B.2(f)

C.2(h)

D.2(i)

 

30. Who said that "An offer need not be made to an ascertained person, but no contract can arise until it has been accepted by an ascertained person"?

A.Lord Atkin

B.Lord Goddard

C.Chashre and Fifoot

D.Anson

 

32. When the agreement is caused by coercion, fraud or misrepresentation the agreement is

A.Illegal

B.Unenforceable

C.Void

D.Voidable

 

33. Which Section of the Contract Act makes the agreements, the meaning of which is not certain or capable of being made certain, as void

A.26

B.27

C.28

D.29

 

34. What can a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as?

A.An offer

B.An obligation to sell book

C.An invitation to offer

D.A promise to make available the books at the listed place

 

35. Which of the following statement is incorrect?

A.A stipulation in a contract of sale may be a condition or warranty.

B.A breach of warranty sometimes results into repudiation of contract

C.A breach of condition results into repudiation of contract.

D.All these

 

36. Whether agent can invoke arbitration clause in contract?

A.Yes

B.No

C.Can invoke if agreement provides for

D.Can invoke if principal authorizes him

 

37. Union of India v. Maddala Thathaiah is an illustration, where the tender was in the form of

A.Public offer

B.Standing offer

C.Specific offer

D.General offer

 

 

38. If a person at whose instance the contract is voidable rescinds it

A.The other party is relieved of his promise

B.The other party is liable to compensate the person who has rescinded the contract

C.The other party is not liable to compensate the person rescinding the contract

D.None of the above

 

39. A quantum merit claim might arise in situations some of which are contractual and others quasi-contractual. The plaintiff entered into an agreement to write for a periodical and, as per the agreement, he was to receive a lump sum amount on the completion of the work. When the plaintiff had written part of the work, the defendant abandoned the project. The plaintiff was held entitled to sue for the work already done because the plaintiff's claim was-

A.Tortious

B.Contractual

C.Quasi-contractual

D.Partly contractual and partly quasi-contractual

 

40. Consider the following statements and point out which of them is correct?
1. An Agreement made without consideration is void.
2. Consideration should have some value in the eyes of the law.
3. Consideration has to be adequate.
Which of the statements given above is/are correct?

A.1, 2 and 3

B.1 and 3

C.3 only

D.1 and 2