Test: Nature Of Contracts- 1


30 Questions MCQ Test Business Laws for CA Foundation | Test: Nature Of Contracts- 1


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QUESTION: 1

The juristic concept of contract consists of:

Solution:

The juristic concept of contract comprises two constituent elements—'obligation' and 'agreement'. Obligation means a legal tie, which imposes upon a determinate person or persons, the necessity of doing, or abstaining from doing, a definite act or acts.

QUESTION: 2

In case of illegal agreements the collateral agreements are?

Solution:

An agreement which loses its legal status is a void agreement. An illegal agreement is one which is not permissible under law. ... Conversely, collateral agreements of an illegal agreement cannot be enforceable by law as they are void ab initio.

QUESTION: 3

In an auction sale, X is the highest bidder. The auctioneer accepts the offer by not speaking but striking the hammer on the table. This amounts to:

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QUESTION: 4

An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other, is a:

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QUESTION: 5

An Executed Consideration is:

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QUESTION: 6

A contract in which, under the terms of a contract, nothing remains to be done by either party is known as

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QUESTION: 7

X offers to sell his house to Y for Rs. 10 Lacs and states in his letter that the offer would be considered as accepted if acceptance is not communicated within a certain time. Here, the letter of X would:

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QUESTION: 8

Which one of the following promises is enforceable?

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QUESTION: 9

P agrees to pay a certain sum to Q, if Q brings on earth a star from sky. This is a:

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QUESTION: 10

Soffered a reward to anyone who returns his lost dog. F bought the dog to S without having heard of the offer. Which of the following is correct?

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QUESTION: 11

A agrees to sell to B a horse for Rs. 25,000 if he wins race and for Rs. 15,000 if he does not. The horse wins the race. The agreement is: 

Solution:

According to Section 2(g), "Agreement not enforceable by law is said to be void." Such agreement are void as initio which means that they are enforceable right from the time they are made. Similarly according to Section 30 of the Indian Contract Act, 1872, a wagering agreement is an agreement between two persons under which money or money's worth is payable, by one person to another on the happening or non- happening of a future uncertain event is called a wagering agreement. Hence, in this case where A agrees to sell to B a horse for Rs. 25,000 if it wins a race and for Rs. 15,000 if does not. The horse wins the race. the agreement between A and B is void and wagering as the agreement between them is unenforceable and wagering because money is payable on the horse winning the race.

QUESTION: 12

On the 5th of a month X makes an offer to Y, by a letter, which reaches Y on 6th.On the 7th, Y posts his letter of acceptance. Meanwhile, on the 6th X posts a letter to Y revoking the offer. On seeing it Y sends a telegram to X on 8th confirming the acceptance given through his letter of the 7th. Discuss the legal of three letters and telegram:

Solution:

Under Section 5, of the Indian Contract Act,1872, a proposal may be revoked at any time, before the communication of its acceptance is completed against the proposer/ offeror. So in this case on the 5th of a month X makes an offer to Y, by a letter which reaches Y on 6th and on the 7th, Y posts his letter of acceptance. Meanwhile on the 6th, X posts a letter to Y revoking the offer, so as a result of X's revocation on 6th, the offer made by him earlier is revoked and there is no contract between X and Y.

QUESTION: 13

X promises to pay Z Rs 5,00,000 if Z can make his dead wife alive. Such an agreement is:

Solution:

According to Section 56 of the Indian Contract Act, 1872, "An agreement to do an impossible Act is void". hence in this case X promises to pay Z Rs 5,00,000 if Z can make his dead wife alive, such a contract is also void as X makes a promise to pay money's worth of Rs 5,00,000 for a task which is impossible to perform.

QUESTION: 14

The person making a proposal is called....

Solution:

The person making the proposal is called the promisor, and the person accepting the proposal is called the 'promisee'

QUESTION: 15

X makes a proposal to Y, which Y accepts. But before the acceptance came to the knowledge of X, Y revokes his acceptance by telegram :When is the revocation complete?

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QUESTION: 16

When an offer is made to the world at large, it is ________ offer

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QUESTION: 17

In case of unenforceable contract having some technical defect, parties

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QUESTION: 18

An offer is made with an intention to have negotiation from other party. This type of offer is:

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QUESTION: 19

--------- contracts are also called contracts with executed consideration.

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QUESTION: 20

 _________ is a game of chance.

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QUESTION: 21

Legal obligation means a duty enforceable by:

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QUESTION: 22

“Holiday Packages” announced as an advertisement are an example of _________:

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QUESTION: 23

When a bookseller sells a book on cash payment then it is called as ______.

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QUESTION: 24

A contract is an agreement:-

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QUESTION: 25

There is no binding Contract in case of -------- as one’s offer cannot be construed as acceptance

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QUESTION: 26

A specific offer can be accepted by ______.

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QUESTION: 27

A offers to sell his house to B, who agrees to purchase it subject to approval by B’s solicitors. Which one of the statements in correct?

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QUESTION: 28

Non-fulfillment by an offeree of a condition precedent to acceptance leads to _________:

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QUESTION: 29

The Contract Act of 1872 was enacted on

Solution:

The Indian Contract Act1872 prescribes the law relating to contracts in India and is the key act regulating Indian contract law. The Contract Act of 1872 was enacted on 25 April 1872.

QUESTION: 30

Which one of the following element is not necessary for a contract?

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