legal aptitude Contract Act CSEET MCQ

Q.1. Where a promisor has made an offer of performance to the promisee and the offer has not been accepted:

A The promisor is responsible for non-performance, but he does not lose his rights under the contract

B The promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract

C The promisor is not responsible for non-performance, but he loses his rights under

the contract

D The promisor can enforce the performance of the promise

Q.2. If it appears from the nature of the case that it was the intention of the parties to any contract that any promise contained in it should be performed by the promisor himself:

A The promisor may employ any other person who is party to the contract to perform the promise

B Any relative of the promisor may perform the promise on behalf of the promisor

C Must be performed by the promisor himself

D Any person who is not a party to a contract may perform the promise

Q.3. When two or more persons have made a joint promise, then, unless a contrary intention appears from the contract, all such persons must fulfil the promise:

A Jointly

B Severally

C Jointly or severally

D Jointly and severally

Q.4. Where two or more persons have made a joint promise, a release of one of such joint promisors by the promise:

A does not discharge the other joint promisor, neither does it free the joint promisor so released from responsibility to the other joint promisor or joint promisors

B discharges the other joint promisor but it does not free the joint promisor so released from responsibility to the other joint promisor or joint promisors

C discharges the other joint promisor also frees the joint promisor so released from responsibility to the other joint promisor or joint promisors

D release of one of such joint promisors is not possible

Q.5. Where a contract consists of reciprocal promises and such reciprocal promises are to be simultaneously performed:

A Promisor need not perform his part of promise at all

B Promisor need not perform his part of promise unless promisee is ready and willing to perform his reciprocal promise

C Promisor has to compel promisee to perform his promise first

D There is no valid contract at all

Q.6. When a party to a contract fails to perform a contract within the fixed time:

A Such contract remains valid provided the promise is fulfilled whether at the time of performance or later

B Such a contract becomes void

C Such contract becomes voidable at the option of the promise, if the intention of the parties was that time should be of essence of the contract

D Such a contract becomes voidable at the option of the promisor or promise and the intention of the parties does not matter

Q.7. Agreement to do an impossible act is:

A Voidable at the option of the promisor

B Void

C Valid

D Voidable at the option of the promise

Q.8. Where persons reciprocally promise, firstly to do certain things which are legal, and, secondly under specified circumstances, to do certain other things which are illegal:

A the first set of promise is a contract, but the second is a void agreement

B The entire contract is void

C The entire contract is valid

D The entire contract is voidable

Q.9. In case of breach of contract of sale of some rare article or thing for which there is no substitute in the market, the Court may grant:

A Quantum Meruit

B Rescission

C Injunction

D Specific Performance

Q.10. What is the obligation of a person who has received advantage under void agreement:

A He can retain the advantage received with the prior approval of the person from whom he received it

B He can retain the advantage received without any prior permission from anyone

C He is bound to restore it or make compensation for it to the person from whom he received it

D He is bound to restore it or make compensation for it only when a Court order is passed in this behalf

Q.11. If a person who is incapable of entering into a contract is supplied with necessaries by another person, then the latter shall:

A Be reimbursed for such supplies by a relative of the incapable person and that relative must be capable of contracting

B Be reimbursed for such supplies from the property of such incapable person

C Be reimbursed for such supplies from the property of such incapable person

D Not entitled to be reimbursed at all

Q.12. What is the responsibility of the finder of goods:

A Same responsibility as a bailee.

B Same responsibility as a trustee

C Same responsibility as a pledgee

D Same responsibility as the owner

Q.13. What is the meaning of novation:

A Rescinding of a contract

B Alteration of a contract

C Change in provisions of a contract

D Substituting an old contract for a new one

Q.14. X owes Rs. 10,000 to Y under a contract. It is agreed between X, Y & Z that Y shall henceforth accept Z as his debtor instead of X for the same amount. Old debt of X is discharged and a new debt from Z to Y is contracted. This is:

A Alteration of contract

B Rescission of contract

C Novation of contract

D Change in contract

Q.15. When a contract is breached, the party who suffers such breach shall:

A Be indemnified for the loss or damage caused to him

B Receive compensation for any loss or damage caused to him

C Be remunerated for the loss or damage caused to him

D Not have any right under this Act

Q.16. What is contract of indemnity:

A A contract by which one party promises to save any third party from loss caused to that party by the contract of the promisor himself, or by the conduct of any other person

B A contract by which one party promises to provide insurance to the other in order to cover up any losses that may arise in the contract

C A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person

D A contract in which one party appoints a guarantor to cover up any losses that may arise in the contract

Q.17. The correct sequence in formation of a contract is:

A Offer, acceptance, consideration, agreement

B Offer, Consideration, acceptance, agreement

C Agreement, consideration, offer, acceptance

D Offer, acceptance, agreement, consideration

Q.18. Which of these contracts has three parties consisting of creditor, principle debtor and surety:

A Contract of indemnity

B Contract of surety

C Contract of pledge

D Contract of guarantee

Q.19. What is a continuing guarantee:

A A guarantee which continues even after the contract comes to an end

B A guarantee which shall be applicable to any other person who becomes a party to the contract

C A guarantee which extends to a series of transaction

D A guarantee which continues till the contract does not come to an end

Q.20. What happens to a continuing guarantee in case of surety’s death:

A Indemnification from the property of the surety with regard to future transactions

B Revocation of the continuing guarantee with regard to future transactions

C The continuing guarantee shall continue in the name of the surety’s heirs

D The continuing guarantee shall be continued by any other person

Q.21. Any guarantee which the creditor has obtained by means of keeping silence as to material circumstances is:

A valid

B considered to be his approval

C invalid

D considered to be his denial

Q.22. X transfers possession or custody of the farmland to his son, S. S shall pay rent or a lease fee in return. S only receives custody and control of the property, but X still owns it. X is thus responsible for paying the property taxes and is liable for what happens on the land. This kind of contract or arrangement is called:

A Guarantee

B Bailment

C Pledge

D Set off

Q.23. What is pledge:

A The bailment of goods as security for payment of a debt or performance of a promise

B The delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them

C A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person

D a contract to do or not to do something, if some event, collateral to such contract, does or does not happen

Q.24. Where a person pledges goods in which he has only a limited interest, the pledge

is:

A Invalid to the extent of that interest

B Entire contract is invalid

C Valid to the extent of that interest

D Entire contract is valid

Q.25. What is the minimum consideration required to create an agency?

A Minimum of Rupees One Lakh

B Minimum of Rupees One Thousand

C No consideration at all is required

D Minimum of Rupees Ten Thousand

1. B

2. C

3. D

4. A

5. B

6. C

7. B

8. A

9. D

10. C

11. B

12. A

13. D

14. C

15. B

16. C

17. A

18. D

19. C

20. B

21. C

22. B

23. A

24. C

25. C