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Bus. Law

1. The document contains 35 multiple choice questions testing knowledge of key concepts in contract law. Some of the concepts addressed include: void vs voidable contracts, consideration, consent, capacity to contract, discharge of contracts, and offer and acceptance. 2. The questions cover topics such as when inadequate consideration makes a contract voidable, who can void a contract entered under coercion, mistakes that make a contract voidable, and what constitutes a valid acceptance. 3. Several questions also address exceptions to rules, such as collateral agreements to illegal contracts being void, and when contingent contracts dependent on future events can be enforced.

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Isaac k Woode
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0% found this document useful (0 votes)
58 views10 pages

Bus. Law

1. The document contains 35 multiple choice questions testing knowledge of key concepts in contract law. Some of the concepts addressed include: void vs voidable contracts, consideration, consent, capacity to contract, discharge of contracts, and offer and acceptance. 2. The questions cover topics such as when inadequate consideration makes a contract voidable, who can void a contract entered under coercion, mistakes that make a contract voidable, and what constitutes a valid acceptance. 3. Several questions also address exceptions to rules, such as collateral agreements to illegal contracts being void, and when contingent contracts dependent on future events can be enforced.

Uploaded by

Isaac k Woode
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

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

A. Void

B. Valid

C. Voidable

D. Unlawful

2. A contract with the minor, which is beneficial for him, is;

A. void ab initio
B. Voidable
C. Valid
D. Illegal

3. When the consent to an agreement is obtained by coercion, the agreement is


voidable at the option of

A. Either party to the agreement


B. A party whose consent was so obtained
C. A party who obtained the consent
D. None of these

4. Where the consent of both the parties is given by mistakes, the contract is;

A. Void
B. Valid
C. Voidable
D. Illegal

5. A mistake as to a law not in force in India has the same effect as;

A. Mistake of fact
B. Mistake of Indian Law
C. Fraud
D. Misrepresentation

6. An agreement in restraint of legal proceedings is void. It does not cover an


agreement which

A. Restrict absolutely the parties from enforcing their legal rights.


B. Cuts short the period of limitation
C. Discharges a party from liability or extinguishes the rights of a party
D. Provides a reference to arbitration instead of a court of law

7. The basis of 'quasi-contractual relations' is the

A. Existence of a valid contract between the parties


B. Prevention of unjust enrichment at the expense of others
C. Provision contained in section 10 of the Contract Act
D. Existence of a voidable contract between the parties

8. The special damages that are, the damages that arise due to so special or unusual
circumstances

A. Are not recoverable altogether


B. Are illegal to be punitive
C. Cannot be claimed as a matter of right
D. Can be claimed as a matter of right

9. When the offeree offers to qualified acceptance of the offer subject to


modifications and variations he is said to have made a

A. Standing, open or continuing offer


B. Counter offer
C. Cross offer
D. Special offer

10. Which is the following is false? An offer to be valid must;

A. Intend to create legal relations


B. Have certain and unambiguous terms
C. Contain a term the non‐compliance of which would amount to
acceptance
D. Be communicated to the person to whom it is made

11. An offer may lapse by

A. Revocation
B. Counter Offer
C. Rejection of offer by offeree
D. All of these

12. Which of the following statement is true?

A. There can be a stranger to a contract


B. There can be a stranger to a consideration

C. There can be a stranger to a contract & consideration

D. None of the above

13. Ordinarily, a minor's agreement is

A. Void ab initio
B. Voidable
C. Valid
D. Unlawful

14. The threat to commit suicide amounts to

A. Coercion
B. Undue influence
C. Misrepresentation
D. Fraud

15. On the valid performance of the contractual obligations by the parties, the
contract;

A. Is discharged
B. Becomes enforceable
C. Becomes void
D. None of these

16. In case of anticipatory breach, the aggrieved party may treat the contract;

A. As discharged and bring an immediate action for damages


B. As operative and wait till the time for performance arrives
C. Exercise option either (a) or (b)
D. None of these

17. A contingent contract depend on the happening of the future uncertain event
can be enforced when the event;

A. Happens
B. Becomes impossible
C. Doesn't happen
D. Either of these

18. On the acceptance of an offer by an offeree


A. Only the acceptor becomes bound by accepting the offer
B. Only the offeror becomes bound as his terms are accepted
C. Both the acceptor and offeree becomes bound by the contract
D. None of these

19. Which of the following persons are not competent to contract?

A. Minors
B. Persons of unsound mind
C. Persons disqualified by law
D. All of these

20. When the consent of a party is obtained by coercion undue influence, fraud or
misrepresentation, the contract is;

A. Void
B. Voidable
C. Valid
D. Illegal

21. Where the consent of a party is obtained by misrepresentation, the contract is;

A. Valid
B. Void
C. Voidable
D. Illegal

22. An agreement to do an illegal act(eg: sharing the earnings of smuggling


business) is

A. Valid
B. Void
C. Voidable
D. Contingent

23. A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax
Department. This agreement is

A. Void
B. Valid
C. Voidable
D. Contingent

24. LA, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay
the entire amount of Rs.60000. Here

A. A can file a suit against D for recovery of the amount exceeding his share
B. A is entitled to recover Rs.20000 each from B and C
C. On payment by A, the contract is discharged and B and C are also not liable to
A.
D. D is not justified here and is liable to refund the entire amount to A

26. Which is the following is false? An acceptance:

A. Must be communicated
B. Must be absolute and unconditional
C. Must accepted by a person having authority to accept
D. May be presumed from silence of offeree

27. Which is the following is false? Consideration:

A. Must move at the desire of the promisor


B. May move from any person
C. Must be illusory
D. Must be some value

28. Consideration may be

A. Past
B. Present
C. Future
D. All of the above

29. Consent is not said to be free when it is caused by

A. Coercion
B. Undue influence
C. Fraud
D. All of these

30. In case of illegal agreements, the collateral agreements are;

A. Void
B. Valid
C. Voidable
D. Any of these
31. A contract is discharged by novation which means the;

A. Cancellation of the existing contract


B. Change in one or more terms of the contract
C. Substitution of existing contract for a new one
D. None of these

32. Sometimes, a party is entitled to claim compensation in proportion to the work


done by him. It is possible by a suit for;

A. Damages
B. Injunction
C. Quantum merit
D. None of these

33. Which of the following statement is true?

A. An agreement enforceable by law is a contract


B. An agreement is an accepted proposal
C. Both (a) and (b)
D. None of these

34. As a general rule, an agreement made without consideration is;

A. Void
B. Voidable
C. Valid
D. Unlawful

35. Which of the following persons do not fall under the category of persons of
unsound mind?

A. Idiot
B. Lunatics
C. Drunken
D. Alien

36. A contract made by mistake about some foreign law, is;

A. Void
B. Valid
C. Voidable
D. Illegal

37. An agreement, which prevents a person from carrying lawful business is


A. Valid
B. Void
C. Voidable
D. Contingent

38. A contingent contract dependent on the non happening of a future uncertain


event becomes void when such event

A. Happens
B. Does not become impossible
C. Does not happen
D. Both (a) and (b)

39. A party entitled to rescind contract, losses the remedy where

A. He has ratified the contract


B. Third party has acquired right in good faith
C. Contract is not separable and recession is sought of a party only
D. All of these

40. When offer is made to a definite person, it is known as

A. General offer
B. Cross offer
C. Counter offer
D. Special offer

E. Who of the following was NOT a proponent of natural law?

Aristotle

F. b) Jeremy Bentham c) St Augustine

G. d) St Thomas Aquinas
H. Question 2
I. The term 'common law' has three different meanings. Which of the following is
NOT a meaning of the term 'common law'?

J. a) The body of law as made by judges through the determination of


cases.

K. b) A legal system that is based on that of England.

L. c) Laws created by Parliament.


M. d) The system of law that emerged following the Norman Conquest in
1066.
N. Question 3
O. The term 'private law' refers to ?

P. a) The body of laws that derive from the deciding of cases.

Q. b) The body of laws that seeks to regulate the relationship between


individuals.

R. c) The legal principle that states that a person has the right to privacy.

S. d) The body of laws that seeks to regulate the relationship between the
State and its citizens.
T. Question 4
U. Which one of the following is regarded as a private law topic?

V. a) Criminal law

W. b) Contract law

X. c) The law relating to human rights

Y. d) Administrative law
Z. Question 5
AA. Regarding the system of equity, which one of the following statements is
untrue?

BB. a) If the common law and equity conflict, the common law
prevails.

CC. b) Equity refers to the supplementary system of law that


originally derived from the decisions of the Court of Chancery.

DD. c) The rules of equity are more concerned with fairness than the
rules of the common law.

EE. d) The administration of the common law and equity is fused, so


any court may apply common law or equitable principles.
FF. Question 6
GG. Which of the following countries DOES NOT have a common law legal
system?

HH. a) England
II. b) Australia

JJ. c) United States of America

KK. d) France
LL. Question 7
MM. The phrase 'civil law' can refer to those legal systems whose laws are based
on Roman law. It can also refer to ?

NN. a) Laws created by judges.

OO. b) The body of laws that does not relate to criminal offences.

PP. c) The supplementary system of law that is based on fairness and


equality, and seeks to mitigate the harshness of the common law.

QQ. d) The body of laws that establish what conduct is criminal and
the punishments for engaging in such conduct.
RR. Question 8
SS.Statute law refers to ?

TT. a) Laws created by the judges through the deciding of cases.

UU. b) The doctrine that seeks to mitigate the harshness of the


common law by deciding cases based on fairness and equality.

VV. c) The body of law that regulates the relationship between the
State and its citizens.

WW. d) The body of laws created by Parliament in the form of


legislation.
XX. Question 9
YY. The phrase 'English legal system' refers to ?

ZZ. a) The legal system of England and Wales.

AAA. b) The legal system of England only.

BBB. c) The legal system of England, Wales and Scotland.


Submit my answ ers
CCC. d) The legal system of the United Kingdom
Clear my answ ers

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