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Test: Contract Of Law - 9


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Test: Contract Of Law - 9 - Question 1

Principle: Agreements, the meaning of which is not certain, or not capable of being made certain, are void.

Facts: A horse was bought for a certain price coupled with a promise to give Rs.500 more if the horse is proved lucky.

Test: Contract Of Law - 9 - Question 2

All contracts are agreements
All agreements are accepted offers

Q. Which of the following derivation is correct?

Test: Contract Of Law - 9 - Question 3

Legal Principle 1: Acceptance of an offer is complete when the acceptance is put into the course of transmission so as to be out of the power of the acceptor

Legal Principle 2: Acceptance once completed, makes the agreement binding on both the parties

Facts: A accepts to buy B’s offer of his motor car for Rs. 4 Lakhs. The acceptance was put into e-mail. Unfortunately, when the e-mail was put, there is distortion as a result of which B is not in a position to really read what A has written

Detailed Solution for Test: Contract Of Law - 9 - Question 3

The correct option is A as according to the first principle.they both have accepted to buy the car  and now after that acc to Legal Principle 2: Acceptance once completed, makes the agreement binding on both the parties. Therefore option A is correct.

Test: Contract Of Law - 9 - Question 4

Legal Principle: A contract is an agreement which the law will enforce. All agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful contract

Facts: A, a 40 yrs. old businessman of sound mind agrees of his own free will to sell his bungalow worth Rs. 10 Lakhs for Rs. 1 Lakh. The agreement

I. Is invalid because of inadequate consideration
II. Is valid because there is lawful consideration
III. Is valid because it was entered into with the free consent
IV. Is valid because X has capacity to contract

Test: Contract Of Law - 9 - Question 5

Legal principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer.

Facts: D sent his servant P to trace his child. D in the meantime announced a reward for providing information about the missing boy. P, in ignorance of the announcement traced the boy and informed D. P later on came to know and he claimed it.

Issue: is the servant entitled to reward

Test: Contract Of Law - 9 - Question 6

The doctrine of privity of contract means

Test: Contract Of Law - 9 - Question 7

A situation when two parties make identical offers to each other in ignorance of each other offer is known as

Test: Contract Of Law - 9 - Question 8

A notice in the newspaper inviting tenders is

Test: Contract Of Law - 9 - Question 9

The agreement which is not legally enforceable is known as

Test: Contract Of Law - 9 - Question 10

An offer was sent by post, the acceptor wrote accepted on the letter, put it in his drawer & forgot about it. The transaction is 

Test: Contract Of Law - 9 - Question 11

‘A’ offers to sell his car to ‘B’ for Rs. 50,000. ‘B’ agrees to buy the car offering Rs. 45,000. The reply of ‘B’ amounts to

Test: Contract Of Law - 9 - Question 12

Mistake of both the parties about the subject matter renders an agreement

Test: Contract Of Law - 9 - Question 13

‘A’ contracts to pay ‘B’ Rs. 1,000 if the B’s house is burnt. This is a 

Test: Contract Of Law - 9 - Question 14

An agreement to do an impossible act has been declared

Test: Contract Of Law - 9 - Question 15

‘A’ and ‘B’ contract to marry each other. Before the date fixed for marriage, ‘A’ goes mad. The contract becomes…………………..

Detailed Solution for Test: Contract Of Law - 9 - Question 15

Section 56 in The Indian Contract Act, 1872 (clause b)- b) A and B contract to marry each other. Before the time is fixed for the marriage, A goes mad. The contract becomes void.

Test: Contract Of Law - 9 - Question 16

Assertion (A):  A void contract is not necessarily illegal
Reason (R): Every illegal contract is void

Test: Contract Of Law - 9 - Question 17

X, a married woman, agreed to live in adultery with B and also agreed to serve him as his housekeeper. In return, B agreed to pay X Rs. 500 per month for living in adultery and Rs. 500 per month for housekeeping. The agreement is

Test: Contract Of Law - 9 - Question 18

Principle: A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests.

Facts: Astha, who is a very good painter, is also a patient in a mental asylum, who, at intervals, is of sound mind. During one of these intervals, she entered into a relationship with Lopamudra to paint a picture of her for a specified amount. She, however, asked Lopamudra to pay her the entire amount in advance. One month later, on the day of delivery of the painting, Astha refused to perform the contract saying that she suffers from insanity. Can Lopamudra force performance?

Test: Contract Of Law - 9 - Question 19

Principle: If the consideration or object of an agreement is forbidden by law, or is of such a nature that would defeat the provisions of any law, or is fraudulent, or is injurious to the person or property of another or, the Court regards it as immoral, or opposed to public policy, then the object or consideration shall be deemed unlawful. Every agreement of which the object or consideration is unlawful is void.

Facts: Agni enters into a contract with Tanuj whereby Tanuj will supply Agni with 10 grams of cocaine for a specified amount. Is the contract void?

Test: Contract Of Law - 9 - Question 20

A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property, the age of majority is twenty-one.

B. A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.

C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

Facts: Animesh convinces Kumud, a girl aged 18 that she would sell her land to him. Kumud’s mother Parineeti is her guardian. Nonetheless Kumud, without the permission of Parineeti, sells the land to Animesh for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Parineeti challenges this transaction claiming the Kumud is a minor and hence the possession of the land shall not be given to Animesh. Thus Animesh is in a difficult situation and has no idea how to recover his money from Kumud.  

Q.

Why is Parineeti justified in challenging the sale transaction?

Test: Contract Of Law - 9 - Question 21

A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property, the age of majority is twenty-one.

B. A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.

C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

Facts: Animesh convinces Kumud, a girl aged 18 that she would sell her land to him. Kumud’s mother Parineeti is her guardian. Nonetheless Kumud, without the permission of Parineeti, sells the land to Animesh for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Parineeti challenges this transaction claiming the Kumud is a minor and hence the possession of the land shall not be given to Animesh. Thus Animesh is in a difficult situation and has no idea how to recover his money from Kumud.  

Q.

Animesh can be allowed to recover the money only if he can show that-

Test: Contract Of Law - 9 - Question 22

A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property, the age of majority is twenty-one.

B. A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.

C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

Facts:
Animesh convinces Kumud, a girl aged 18 that she would sell her land to him. Kumud’s mother Parineeti is her guardian. Nonetheless Kumud, without the permission of Parineeti, sells the land to Animesh for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Parineeti challenges this transaction claiming the Kumud is a minor and hence the possession of the land shall not be given to Animesh. Thus Animesh is in a difficult situation and has no idea how to recover his money from Kumud.

Q . Why is Parineeti justified in challenging the sale transaction?

Test: Contract Of Law - 9 - Question 23

A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property, the age of majority is twenty-one.

B. A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.

C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

Facts: Animesh convinces Kumud, a girl aged 18 that she would sell her land to him. Kumud’s mother Parineeti is her guardian. Nonetheless Kumud, without the permission of Parineeti, sells the land to Animesh for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Parineeti challenges this transaction claiming the Kumud is a minor and hence the possession of the land shall not be given to Animesh. Thus Animesh is in a difficult situation and has no idea how to recover his money from Kumud.  

Q.

Which of the following is correct?

Test: Contract Of Law - 9 - Question 24

A. A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property, the age of majority is twenty-one.

B. A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.

C. In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.

Facts: Animesh convinces Kumud, a girl aged 18 that she would sell her land to him. Kumud’s mother Parineeti is her guardian. Nonetheless Kumud, without the permission of Parineeti, sells the land to Animesh for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Parineeti challenges this transaction claiming the Kumud is a minor and hence the possession of the land shall not be given to Animesh. Thus Animesh is in a difficult situation and has no idea how to recover his money from Kumud.  

Q.

Which of the following is correct?

Test: Contract Of Law - 9 - Question 25

B accepts A’s proposal by a letter sent by post. The communication of the acceptance is complete

Test: Contract Of Law - 9 - Question 26

A proposes by a letter sent by post to sell his house to B. B accepts the proposal by a letter sent by post

Test: Contract Of Law - 9 - Question 27

A applies to a banker for a loan at a time when there is stringency in the money market. The banker declines to make the loan except at an unusually high rate of interest. A accepts the loan on these terms.

Test: Contract Of Law - 9 - Question 28

Principles:
1) An agreement enforceable by law is a contract
2) In order for an agreement to be enforceable in a court of law, there must be a meeting of minds b/w both the parties
3) Parties to a contract should do something for the other party. The obligation to do something for the other party is mutual. This is called consideration and absence of consideration renders the contract unenforceable.
Facts: A promised to take B out for a dinner in a restaurant. Even after two weeks, A did not fulfill the promise. B wants to sue A to enforce that promise. If B goes to court:

Test: Contract Of Law - 9 - Question 29

A agrees to pay B Rs. 1000 if the two straight lines should enclose a space           

Test: Contract Of Law - 9 - Question 30

Principle: If a party consent has been obtained by misrepresentation, the party to whom the misrepresentation has been made may reject the contract

Facts: J is in need of a house for immediate occupation and hence approaches S, the owner of a house. The house is in a visibly precarious condition and requires a few repairs in order to make it habitable. However, S tells J that the house is good for lodging and J signs the leases agreement with S. J then finds out the actual state of the house and seeks to reject the contract

Test: Contract Of Law - 9 - Question 31

Principle: when one party to the contract is in such relation with the other party as to be able to dominate his/her will, and uses this superior position to obtain the other party consent to a contract, she is said to have exercise undue influence

Facts: A’s grandfather has 3 sons one of them being A’s father. A’s grandfather gifts his best properties to A. A’s two uncles sue their father i.e. A’s grandfather stating that his consent to the gift has been obtained through the exercise of undue influence.

Test: Contract Of Law - 9 - Question 32

Principle: Agreement by way of wager is void and no suit lies for recovering anything won by such wager

Facts: Mr. X and Mrs. Y enter into a contract with R who is an expert in betting on horse racing. Both pay a sum of Rs. 2000 to R to bet on a particular horse. R followed the instructions and he won a sum of Rs. 20 lakhs

Test: Contract Of Law - 9 - Question 33

Principle: For a contract an offer has to be made that is accepted and there is consensus ad idem

Facts: A goes to a shop and asks the shopkeeper to deliver rice at his residence in their previous dealings of about 12 years; he had always ordered the Basmati variety of rice. The shopkeeper stores five varieties of rice. He delivers krishnakali variety. A had wanted basmati. Shopkeeper wants to enforce the contract

Test: Contract Of Law - 9 - Question 34

Principle: Any person who has received any unjust benefit, he/she must return it to the right/owner
Facts: A and B had similar sounding names. The postman delivered a parcel meant for B at A’s residence, by mistake

Test: Contract Of Law - 9 - Question 35

When the consent to an agreement is obtained by undue influence, the agreement is at the option of

Test: Contract Of Law - 9 - Question 36

Mere silence is no fraud unless           

Test: Contract Of Law - 9 - Question 37

The mother owes Rs. 10000 to her daughter. By this debt has become barred by the limitation act. The mother signs a written promise to par Rs. 3000 on account of the debt. In this case which one of the following is correct

Test: Contract Of Law - 9 - Question 38

A minor estate is liable for the ………….supplied to him           

Test: Contract Of Law - 9 - Question 39

Principle 1: A minor is a person who is below the age of eighteen. However, where a guardian administers the minor’s property the age of majority is twenty one.
Principle 2: A minor is not permitted by law to enter into a contract. Hence, where a minor enters into a contract with a major person, the contract is not enforceable. This effectively means that neither the minor nor the other party can make any claim on the basis of the contract.
Principle 3: In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation.
Facts
Ajay convinces Bandita, a girl aged 18 that she would sell her land to him. Bandita’s mother Chaaru is her guardian. Nonetheless Bandita, without the permission of Chaaru, sells the land to Ajay for a total sum of rupees fifty lakh, paid in full and final settlement of the price. Chaaru challenges this transaction claiming the Bandita is a minor and hence the possession of the land shall not be given to Ajay. Thus Ajay is in a difficult situation and has no idea how to recover his money from Bandita.

Q.

Chaaru is justified in challenging the sale transaction because:

Test: Contract Of Law - 9 - Question 40

Ajay can be allowed to recover the money only if he can show that:

Test: Contract Of Law - 9 - Question 41

In order to defend the sale, Bandita will need to show that

Test: Contract Of Law - 9 - Question 42

Which of the following is correct?

Test: Contract Of Law - 9 - Question 43

Which of the following is correct?

Test: Contract Of Law - 9 - Question 44

Principle: A contract obtained by misrepresentation is voidable at the option of the buyer.

Facts: Anand wants to sell his house. Anupama approaches him with an offer to buy the house and Anand shows her the house. The house is not in a very good condition and visibly requires repairs, without which it is uninhabitable. Anand does not tell anything regarding the required repairs to be livable. Anupama purchases the house for a huge consideration. Later on when she wants to move in her things into the house to start living she realizes the heavy repairs that the house requires urgently.

Test: Contract Of Law - 9 - Question 45

Legal Principle: Performance of a legal duty cannot be a consideration for a promise

Factual Situation: ‘A’s wallet is stolen by a thief. ‘A’ lodges a complaint in the police station. ‘A’ promises
to pay a sum of Rs. 500 to the person who is able to apprehend the thief and get back his wallet. The
policeman’s servant ‘X’ apprehends the thief and gets back the wallet. ‘A’ refuses to pay ‘X’ the promised
Rs. 500.

Q.
Choose the correct option:
I. The servant is entitled to the reward
II. The policeman would have been entitled to the reward had he been the person to apprehend the thief
III. The policeman would be entitled to the reward even if he had not apprehended the thief
IV. The servant would not be entitled to the reward

Test: Contract Of Law - 9 - Question 46

A voidable contract is one which is:

Test: Contract Of Law - 9 - Question 47

“A” promise to give money or money’s worth upon the determination or ascertainment of an uncertain event is called

Test: Contract Of Law - 9 - Question 48

“A” offers to sell his car to “B” for Rs. 50,000/-. “B” agrees to buy the car offering Rs. 45,000/-. The reply of “B” amounts to:

Test: Contract Of Law - 9 - Question 49

When goods are displayed in a show – window bearing price tags, it indicates:

Test: Contract Of Law - 9 - Question 50

Which of the following is correct?

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