Contract Of Law Test-5


50 Questions MCQ Test Legal Reasoning for CLAT | Contract Of Law Test-5


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QUESTION: 1

A contract with or by a minor is a—

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QUESTION: 2

A contingent contract—

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QUESTION: 3

X promises to make a sculpture for Y—

Solution:

The correct option is B.

As the promise is made between X and Y. No third party is involved

QUESTION: 4

Reasonable time for performance of a contract is a question—

Solution:

A is the correct option.Section 46 in The Indian Contract Act, 1872- Where, by the contract, a promisor is to perform his promise without application by the promisee, and no time for performance is specified, the engagement must be performed within a reasonable time." Explanation.—The question “what is a reasonable time” is, in each particular case, a question of fact.

QUESTION: 5

Which of the following persons can perform the contract

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QUESTION: 6

A voidable contract is one which

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QUESTION: 7

A enquires from B, “will you purchase my cow for $100?” B replies, “I shall purchase your cow for $100 provided you purchase my parrot for $120” In this case……………………

Solution:
QUESTION: 8

The following persons can enter into contracts as per the provisions of the Indian contracts act, 1872

Solution:

The correct option is D.
Under indian contract act 1872, following persons can enter into contract.
1. Sound mind
2. a major
3. competent to contract
4. not disqualified by law

QUESTION: 9

A entered into a contract with B for the supply of certain things manufactured by C. C did not manufacture those goods. What is your advice?

Solution:

B is the correct option. The contract is complete from both A and B but A has failed to keep his promise so he is liable for any damage to B.

QUESTION: 10

Which of the following is FALSE ? An acceptance

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QUESTION: 11

Where two parties make identical offers to each other offer, the offers are known as

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QUESTION: 12

An agreement made with a free consent to which the consideration is lawful but inadequate is

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QUESTION: 13

An agreement without consideration is

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QUESTION: 14

If the proposer prescribes the mode & manner of acceptance, the acceptance

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QUESTION: 15

In case of default by joint Promisors, the promise

Solution:

B is the correct option. Section 43 allows a promisee to sue one or more of several joint promisors to be sued only along with his co-promisors. It is no defense to such a suit that all the promisors must have been made parties.

QUESTION: 16

Where one of the joint promisors makes a default in contribution of performance

Solution:

B is the correct option. The promisors, may compel every joint promisor to contribute equally to the performance of the promise (unless a contrary intention appears from the contract). If any one of the joint promisors makes default in such contribution the remaining joint promisors must bear the loss arising from such default in equal shares.

QUESTION: 17

A contingent contract

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QUESTION: 18

Enforceable agreements are the one

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QUESTION: 19

An agreement in restraint of trade is valid under Section 27, it relates to

Solution:

C is the correct option.Section 27 of Indian contract Act, 1972 states that, "Agreement in restraint of trade, void – Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void. 

QUESTION: 20

Communication of a proposal is complete

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QUESTION: 21

Acceptance to be valid must

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QUESTION: 22

A contract based on the happening or non happening of a future event is called

Solution:

Contingent contracts might be based on the non-happening of an uncertain future event within a fixed time. In such cases, the promisor is liable to do or not do something if the event does not happen within the said time.

QUESTION: 23

Competence of a contract relates to

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QUESTION: 24

…………….cannot enter into a contract

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QUESTION: 25

In reciprocal promises, first to do things which are legal are…………..and second to do things which are illegal are……………

Solution:
QUESTION: 26

Which one of the following statements is correct? When a contract is caused by fraud, the contract is

Solution:
QUESTION: 27

Consider the following statements:
The communication of an acceptance is complete
1. as against the acceptor when it comes to the knowledge of the proposer.
2. as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor.

Q. Which of the statements given above is/are correct?

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QUESTION: 28

What is the primary object of law of damages for a breach of contract?

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QUESTION: 29

Consider the following statements:
1. When consent to an agreement is caused by undue influence, the agreement is a contract voidable at the opinion of the party whose consent was so caused.
2. Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void.

Q. Which of the statements given above is/are correct?

Solution:
QUESTION: 30

Consider the following statements regarding fraud and misrepresentation:
1. Both render the contract voidable.
2. Misrepresentation is a cause of action in tort for damages.

Q. Which of the statements given above is/are correct?

Solution:

The correct answer is A  as Misrepresentation is a cause of action in tort for damages.

QUESTION: 31

Which one of the following is an essential component of a valid contract?

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QUESTION: 32

Which of the following agreement(s) is/are void?
1. Agreement without consideration.
2. Agreement in restraint of legal proceedings.
3. Agreement affected by fraud.

Q. Select the correct answer using the code given below:

Solution:

1 and 2 are correct statements as agreement by way of fraud is not void but voidable at the option of the plaintiff.

QUESTION: 33

What is an agreement to discover a treasure by magic?

Solution:
QUESTION: 34

A supplies to B- A lunatic with necessaries suitable to his condition in life. Can A recover the value of necessaries from B?
1. A cannot recover as B is not competent to make a contract.
2. A cannot recover as no legal action lies against B.
3. A can recover by making B’s property liable.

Q. Which of the above is/are the valid reason(s)?

Solution:
QUESTION: 35

Consider the following statements:
1. If an infant obtains property or goods by misrepresenting his age, he can be compelled to restore it even though the infant has sold the goods or converted them.
2. There is no estoppel against minor.

Q. Which of the statements given above is/are correct?

Solution:

B is the correct option. Any infant can sue another for any kind of damage he/she suffered but can't be sued in any case. They have absolute immunity( refer to the principles related to infants.)

QUESTION: 36

Consider the following statements:
1. A shopkeeper’s catalogue of price is not an offer.
2. An auctioneer’s announcement that specified goods will be sold by auction on a certain day is not an offer to hold the auction.

Q. Which of the statements given above is/are correct?

Solution:
QUESTION: 37

Directions: The given item consists of two statements, one labelled as the ‘Assertion (A)’ and the other as ‘Reason (R)’. You are to examine these two statements carefully and select the answer to these items using the codes given below:

Codes:

Assertion (A): A void contract is not necessarily illegal.

Reason (R): Every illegal contract is void.

Solution:
QUESTION: 38

Principle: Agreement void where both parties are under mistake as to matter of fact 

Facts: A agrees to sell to B a specific cargo of goods supposed to be on its way from England to Bombay. It turns out that before the day of the bargain the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of these facts.

Solution:
QUESTION: 39

Principle: The consideration or object of an agreement is lawful, unless -It is forbidden by law; or is of such nature that, if permitted it would defeat the provisions of any law or is fraudulent; of involves or implies, injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

Facts: A promises to obtain for B an employment in the public service and B promises to pay Rs. 1000 to A.

Solution:
QUESTION: 40

Principle: The consideration or object of an agreement is lawful, unless -It is forbidden by law; or is of such nature that, if permitted it would defeat the provisions of any law or is fraudulent; of involves or implies, injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

Facts: A promises B to drop prosecution which he has instituted against B for robbery and B promises to restore the value of the things taken.

Solution:
QUESTION: 41

Principle: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. The expression of willingness/desire results in a valid proposal only when it is made/addressed to some person (s).   

Facts: ‘X’ makes the following statement in an uninhabited hall. ‘I wish to sell my mobile phone for Rs. 1000.

Solution:
QUESTION: 42

Principle: A proposal (offer) should be made with an intention that after its valid acceptance, a legally binding promise or agreement will be created. The test for the determination of such intention is not subjective, rather it is objective. The intension of the parties is to be ascertained from the terms of the agreement and the surrounding circumstance under which such   an agreement is entered into.     
As a general rule, in the case of arrangements regulating social relations, it follows as a matter of course that the parties do not intend legal consequences to follow. On the contrary, as a general rule, in the case of arrangements regulating business affairs, it follows as a matter of course that the parties intend legal consequences to follow. However, the above rules are just presumptive in nature and hence can be rebutted.

Facts: One morning while having breakfast, ‘X’, the father, says to ‘Y’ (X’s son), in a casual manner, ‘I shall buy a motorbike for you, if you get through the CLAT’.

Q. Which of the following derivations is correct?   

Solution:
QUESTION: 43

Principle: Acceptance (of offer) must be communicated by the offeree to the offeror so as to give rise to a binding obligation. The expression ‘by the offeree to the offeror’ includes communication between their authorized agents. 

Facts: ‘X’ made an offer to buy Y’s property for a stipulated price. ‘Y’ accepted it and communicated his acceptance to ‘Z’, a stranger.

Solution:
QUESTION: 44

Principle: Acceptance should be made while the offer is still subsisting. The offeror is free to retract his offer at any time before his offer gets accepted by offeree. Once the offer is withdrawn or is lapsed, it is not open to be accepted so as to give rise to a contract. Similarly, if a time is prescribed within which the offer is to be accepted, then the offer must be accepted within the prescribed time. And if no time is prescribed, then the acceptance must be made within a reasonable time. ‘What is a reasonable time’, is a question of fact which is to be determined by taking into account all the relevant facts and surrounding circumstances. 

Facts: ‘X’ makes an offer to ‘Y’ to sell his equipment for Rs.1000.00. No time is specified for the acceptance. ‘Y’ sends his reply two years after receiving the offer.

Solution:
QUESTION: 45

Principle: Minor’s agreement is void from the very beginning. It can never be validated. It cannot be enforced in the court of law.   

Facts: ‘A’, a boy of 16 yrs of age, agrees to buy a camera from ‘B’, who is a girl of 21yrs of age.

Solution:
QUESTION: 46

Principle: A contract which is duly supported by real and lawful consideration is valid notwithstanding the fact that the consideration is inadequate. The quantum of consideration is for the parties to decide at the time of making a contract and not for the courts (to decide) when the contract is sought to be enforced. An agreement to which the consent merely because the consent of the promisor is freely given is not void inadequate. But the inadequacy of the consideration may be taken into account by the court in determining the    question whether the consent of the promisor was freely given.

Facts: ‘A’ agrees to sell his mobile phone worth Rs. 20000 for Rs. 100 only to ‘B’ A’s consent is freely given.

Solution:
QUESTION: 47

Principle: the consideration or object of an agreement is unlawful if it is forbidden by law. Every agreement of which the object or consideration is unlawful is void.    

Facts: ‘X’ promises to pay ‘Y’ Rs. 50000, if he (‘Y’) commits a crime, ‘X’ further promises to indemnify his (‘Y’) against any liability arising thereof. ‘Y’ agrees to act as per X’s promise. 

Solution:
QUESTION: 48

Principle: The consideration of object of an agreement is unlawful if the court regards it as opposed to public policy. Every agreement of which the object or consideration is unlawful is void.
Facts: ‘X’ promises to obtain for ‘Y’ an employment in the public service and ‘Y’ promises to pay Rs. 500000 to ‘X’

Solution:
QUESTION: 49

Principle: Two or more person are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake.  
When consent to an agreement is caused by coercion, undue influence, fraud or misrepresentation, the agreement is a contract voidable (rescindable or terminable) at the option of the party whose consent was so caused, However, when consent to an agreement is caused by mistake as to a matter of fact essential to the agreement, the agreement is void. 

Facts: ‘X’ threatens to gun down ‘Y’, if he (‘Y’) does not sell his property worth Rs. 2000000 for Rs. 100000 only. As a consequence ‘Y’ agrees to sell it as demanded by ‘X’.  

Solution:
QUESTION: 50

Principle: Agreements in restraint of marriage is void.
Facts: ‘X’ enters into an agreement, with ‘Y’ where under he agrees not to marry anybody else other than a person whose name starts with the letter ‘A’ and promises to pay Rs. 100000 to ‘Y’ of the (‘X’) breaks this agreement.

Solution:

According to the provisions of Section 26 of the Indian Contract act 1872, every agreement in restraint of the marriage of any person, other than a minor, is void. In the given situation, X enters into an agreement with Y, where he agrees not to marry anybody else other than  a person whose name starts with the letter A. So, this agreement is against the principle given here, consequently the agreement between X and Y is void and cannot be enforced by the court of Law.

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