1) A contract is an-------between two parties which is legally enforceable

a) Agreement
b) Bond
c) Complaint
d) None of the above
Ans: a)
2) An offer made to the whole world is called-
a) Special offer
b) General offer
c) Standing offer
d) None of the above
Ans: b)
3) Year of the enactment of Indian Contract act-
a) 1881
b) 1930
c) 1935
d) 1872
Ans: d)
4) Quasi contract is----- in the court of Law
a) Agreement
b) Enforceable
c) Offer
d) Acceptance
Ans: b)
5) Only------is transferable to pawnee
a) Possession
b) Ownership
c) Reward
d) Benefit
Ans: a)
6) An unpaid seller has right against
a) Goods
b) Buyer
c) Seller
d) Goods and buyer
Ans: d)
7) Cheque does not require------ by the drawee
a) Acceptance
b) Payee
c) Drawer
d) Return
Ans: a)
8) A holder is presumed to be a------
a) Acceptor
 b) Promisee
c) Bailor
d) Holder in due course
9) An agreement is voidable contract when it is-
a) Enforceable if certain conditions are fulfilled
b) Enforceable by law at the option of the aggrieved party
c) Enforceable by both the parties
d) Not enforceable at all
Ans: b)
10) An agreement not enforceable by law is said to be
a) Void
b) Voidable
c) Valid
d) Unenforceable
Ans: a)
11) Consideration to a contract at the desire of-
a) Promisor
b) Agent
c) Promisee
Ans: a)
12) Past consideration is also known as-
a) Executory Consideration
b) Executed Consideration
c) Prospective consideration
Ans: b)
13) The case of Mohiri Bibi Vs Dharam das ghosh deals with
a) Communication of offer
b) A minors agreement
c) Communication of acceptance
Ans: b)
14) When consent is not freely given
And when it is caused due to coercion Undue influence or misrepresentation contract becomes-
a) Void
b) Voidable
c) Valid
Ans: b)
15) An agreement with the minor is-
a) Void
b) Voidable
c) Valid
Ans: a)
16) On attaining the age of majority a minor s agreement
a) Can not be ratified by him
b) Can be ratified by him
 c) Becomes void
d) Becomes valid
Ans:a)
17) A minor by misrepresenting his age borrows some money-
a) He can be sued for fraud
b) He is liable to return the money
c) He can not sued for fraud
Ans: c)
18) A minor enters into a contract for the purchase of certain necessaries in such cases-
a) He is personally not liable to pay
b) His estate is liable to pay
c) He is liable to pay
d) His guardians are liable to pay
Ans: b)
19) A person who is usually of sound mind but occasionally of unsound mind-
a) He can make the contract in any condition
b) He can not make the contract at all
c) He may not make the contract when he is of sound mind
d) He may enter into contracts when he is of sound mind
Ans: d)
20) Contract of life insurance is-
a) A contract of indemnity
b) A wagering agreement
c) Quasi contract
d) None of the above
Ans: a)
21) An agreement to do impossible act is-
a) Voidable
b) Illegal
c) Enforceable under certain conditions
d) Void
Ans: d)
22) A wagering agreement is-
a) Forbidden by law
b) Immoral
c) Opposed to public policy
Ans: c)
23) A quasi contract is-----
a) A void agreement
b) An agreement
c) Creates a legal obligation
Ans: c)
24) Which of the following is the wagering agreement
a) Picture puzzles
 b) A contract of insurance
c) An agreement to buy a ticket for lottery
Ans: c)
25) Person when finds goods belonging to another person and take them into his custody is subject
to the same responsibility as a-
a) Bailee
b) Bailor
c) True owner
d) Thief
Ans: a)
26) E-contract means a contract in-
a) Written form
b) Electronic form
c) Oral form
Ans: b)
27) A digital contract must be signed in-
a) Electronic form
b) Written form
c) Oral form
Ans: a)
28) The information technology act 2000 was amended by the technology Act-
a) 2004
b) 2009
c) 2008
Ans: c)
29) In E-contract the promisor is-
a) Bailor
b) Promisor
c) Originator
Ans: c)
30) In a Bailment if there is a absence of any reward then it is called as-
a) Pledge
b) Gratituous Bailment
c) Bailment for remuneration
Ans: b)
31) Bailment can of-
a) Movable property only
b) Immovable property only
c) Both movable property and immovable property
Ans: a)
32) Lien means-
a) Right to sell the goods
b) Right to buy the goods
c) Right to retain the possession of the goods
 Ans: c)
33) A contract of indemnity is a-
a) Wagering contract
b) Contingent contract
c) Quasi contract
Ans: b)
34) The right of subrogation in a contract of guarantee is available to the
a) Creditor
b) Principal debtor
c) Surety
Ans: c)
35) Goods delivered to another person as a security for money
a) Pledge
b) Bailment
c) Agency
Ans: a)
36) The person delivering the goods is called as-
a) Bailee
b) Bailor
c) Promisor
d) Pawnee
Ans: a)
37) Any guarantee obtained by misrepresenting is-
a) Valid
b) Invalid
c) Voidable
Ans: b)
38) Every contract of guarantee has-
a) Two agreements
b) One agreement
c) Tripritate agreement
Ans: c)
39) A guarantee which extends to a series of transaction is called
a) Continuing Guarantee
b) Invalid guarantee
c) Contract of guarantee
Ans: a)
40) A contract of sale of goods is a contract where the seller
a) Transfers the property
b) Transfers the money
c) Makes no transfers
Ans: a)
41) In case of destruction of goods after sell the loss bear by
a) Seller
 b) Buyer
c) Creditor
d) Third party
Ans: buyer
42) General property in goods means
a) Ownership
b) Possession
c) Delivery
d) Subject matter of contract
Ans: a)
43) Where the price not determined by the contract the buyer shall pay
a) Any price
b) Reasonable price
c) Price fixed by the third party
Ans: b)
44) Goods means-
a) Money
b) Any immovable property
c) Every kind of movable property
Ans: c)
45) A Stipulation essential to the contract is-----
a) Warranty
b) Condition
c) Sale
Ans: b)
46) The doctrine of caveat emptor means
a) Seller beware
b) Buyer beware
c) Seller and buyer both beware
Ans: b)
47) In case of breach of condition by the seller
a) Buyer can reject the goods
b) Buyer can sue for damages
c) Buyer doesn’t have any right under the sale of goods act
Ans: a)
48) In case of breach of warranty by the seller, the buyer can
a) Reject the contract
b) Treat the breach of warranty as a breach of condition
c) Can sue for damages only
Ans: c)
49) Risk prima facie passes with
a) Possession
b) Payment of price
c) Ownership
 Ans: c)
50) All negotiable instruments are
a) Considered as goods
b) Actionable claims or chose in action
c) Not transferable
Ans: b)
51) A promissory note, bill of exchange is payable to bearer on which endorsement is
a) In full
b) Without recourse
c) In blank
Ans: b)
52) A negotiable instrument includes
a) Cheque
b) Hundi
c) Share warrants
Ans: a)
53) Every transfer of negotiable instrument is presumed to have been made
a) After maturity
b) Before maturity
c) At any time
Ans: a)
54) Real enactment of negotiable instrument act is
a) 1881
b) 1981
c) 1681
Ans:a)
55) The property in a negotiable instrument passes from one person to another in case of an
instrument payable to order
a) By delivery
b) Endorsement
c) Endorsement and delivery
Ans: c)
56) Consideration in case of negotiable instrument is always
a) Proved
b) Presumed
c) Never presumed
Ans: b)
57) Every negotiable instrument represents
a) Goods only
b) Money only
c) Immovable property only
Ans: b)
58) A negotiable instrument which is not required to be stamped is
a) Bill of exchange
 b) Cheque
c) Promissory note
Ans: b)
59) A promissory note is an instrument which contain
a) An order to pay
b) An undertaking to pay
c) An implied promise to pay
Ans:;a)
60) Every illegal agreement is void but every void agreement is not
a) Immoral
b) Illegal
c) Opposed to public policy
Ans: b)
61) The contractual capacity of a company is regulated
a) It’s a memorandum of association and the provisions of the company act 1956
b) The terms of contract entered into with third party
c) It’s a article of association
d) It’s a prospectus
Ans: a)
62) A contingent contract is
a) Void
b) Voidable
c) Valid
d) Illegal
Ans: c)
63) Holder in due course is a holder
a) For consideration
b) Without any Consideration
c) After maturity of the instrument
Ans: a)
64) Every holder of the negotiable instrument presumed to be
a) Holder in due course
b) Person in case of need
c) Acceptor
Ans: a)
65) Accommodation Bill is a bill
a) Which is incomplete
b) Which is with out Consideration
c) Which is delivered conditionally
Ans: b)
66) Party standing in immediate relation with each other in case of bill of exchange are
a) Makers to payee
b) Drawer to acceptor
c) Makers to promisor
 Ans: b)
67) In case of negotiable instrument where no Consideration passed or consideration which pass
but failed subsequently then a negotiable instrument is
a) Valid
b) Void
c) Voidable
Ans: b)
68) Presumption as to negotiable instrument are also known as
a) Rules of proof
b) Special rules of evidence
c) Special rules of negotiations
Ans: b)
69) The definition of contract of indemnity as given in the Indian Contract act 1872 includes
a) Implied promises to indemnity
b) Cases where losses arises from accidents and events not depending on the conduct of
the promisor or any other person
c) Cases where the losesis caused by the conduct of the promisor itself or by the conduct
of any other person
Ans: c)
70) Any changes made without surety’s consent in terms of the contract between the principal
debtor and the creditor discharges surety
a) Transactions prior to variance
b) As to transactions subsequent to variances
c) As to all transactions
Ans- b)
71) A guarantee obtained by a creditor by keeping silence as to material circumstances is
a) Valid
b) Voidable
c) Invalid
Ans: c)
72) Where there are cosurities released by the creditor of one of them
a) Discharges the surety
b) Does not discharge the surety
c) Makes the cosurities immediately liable
Ans: b)
73) The omission of the creditor to sue with in the period of limitations
a) Discharges the surety
b) Does not discharge the surety
c) Makes the contract of guarantee void
Ans: b)
74) A agree to pay B , Rs. 2000 if certain ship does not return at Mumbai port with in a year . A’s
promise can be enforced when the ship
a) Arrives Mumbai in a damage condition during the year
b) Is lost or sunk during the year
 c) Arrives Mumbai in a good condition during the year
Ans: b)
75) A contracts with B to pay Rs. 10000 if B’s house is burnt, this is a
a) Wagering contract
b) Contingent contract
c) Contract of guarantee
Ans: b)
76) S and P go into a Shop. S says to the shopkeeper let me have the goods and if he does not pay l
will pay. This is a-
a) Contract of guarantee
b) Contract of indemnity
c) Quasi contract
Ans: b)