1. A
promise not to compete is
a. Price-fixing
b. Restraint
of trade
c. Usury
d. A restrictive covenant
2. The
destruction of the subject matter of a contract discharges that contract.
a. True
b. False
3. Can
a contract be ended by mutual agreement by the parties?
a. Yes
b. No
4. As
long as all terms have been carried out properly and completely, the contract
is discharged by _______________. (This
is the most common way contracts are discharged.)
a. Agreement
b. Avoidance
c. Performance
d. Exaction
5. Damages
agreed upon by the parties when they first enter into a contract are called
a. Actual
damages
b. Incidental
damages
c. Anticipatory
damages
d. Liquidated damages
6. The
Law of Contract is nothing but
a. A child of commercial dealing
b. A
child of religion
c. A
child of day to day politics
d. A
child of economics
7. The
Contract Act applies to
a. Contracts
made before 1 September, 1872
b. Contracts
made on 1 September, 1868
c. Contracts
made before 1 September, 1872 and to be enforced after 1 September, 1872
d. Contracts made on and after 1 September, 1872
8. An
Indian mercantile law is based upon
a. Indian
culture
b. British
culture
c. England law
d. American
law
9. An
agreement consists of reciprocal promises between at least
a. Four
parties
b. Six
parties
c. Three
parties
d. Two parties
10.Contractual
rights and duties are created by
a. State
b. Statute
c. Parties
d. Custom
or Usage
11.In
India, the express provisions of the
Contract Act applies to
a. Hindus
b. Mohammedan
c. Business
man
d. All of the above
12.Who
said, “Every Agreement and Promise enforceable at law is a contract?
a. Austin
b. Benjamin
c. Pollock
d. Balfour
13.The
provisions of Indian Contract Act override
a. The
provisions of Hindu law
b. The
provisions of Mohammedan law
c. Usage
or customs of trade
d. All of the above
14.Contract
is defined as agreement enforceable by law, vide Section …… of the Indian
Contract Act.
a. 2(e)
b. 2(f)
c. 2(h)
d. 2(i)
15.A
sells his car to B.A has a right to recover the price of the car from B. This
right is a
a. Right
is rem
b. Right is personam
c. Right
in rem as well as right in personam
d. Moral
right
16.A
owns a residential flat. He is entitled to quiet possession and enjoyment of his
property. This is called
a. Rights
in Personam
b. Rights is Rem
c. Moral
Right
d. There
is no right at all
17.A
owes Rs 1 lakh to B. B is entitled to recover this amount from A. This is
called
a. Rights in Personam
b. Rights
is Rem
c. Constitutional
Right
d. There
is no right at all
18.Valid
Contracts
a. Are
made by free consent
b. Are
made by competent party
c. Have
lawful consideration and lawful object
d. All of the above
19.What
comes first in a valid contract is
a. Enforceability
b. Money
c. Force
d. None
of the above
20.A
has bought a house for Rs 50,000. Which of the following right is available to
A after the purchase?
a. He
has a right against the seller to have quiet possession of the house and enjoy
in it
b. He has a right against the whole world to have quiet possession of
the house and enjoy in it
c. He
has moral right over the house
d. He
has a right to live in the house but cannot sell
21.An
agreement not enforceable by law is said to be void under section …….. of the
Indian Contract Act.
a. 2
(a)
b. 2
(b)
c. 2
(f)
d. 2 (g)
22.An
agreement to commit a tort is
a. Void
b. Voidable
c. Valid
d. Unenforceable
23.Agreement
to murder a person
a. Cannot be enforced by law
b. Is
valid in law
c. Is
invalid for want of consideration
d. Has
no consensus ad idem
24.Agreements
that do not give rise to contractual obligations are not contracts.
a. True
b. Partly
True
c. False
d. None
of the above
25.A
invites B for his son’s wedding. B accepts the invitation. In this case, there
is an agreement but no contract, since
a. There
is no consideration
b. There is no intention to create legal relationship
c. There
is no written document
d. There
is no formal acceptance of the offer
