Q.1. Where the consent of a party is obtained by misrepresentation, the contract is;

  1. Valid
  2. Void
  3. Voidable
  4. Illegal

 

Answer: (C) Voidable

 

Q.2. A agrees to pay Rs.5 lakhs to B procures an employment for A in Income Tax Department. This agreement is

  1. Void
  2. Valid
  3. Voidable
  4. Contingent

 

Answer: (A) Valid

 

Q.3. An agreement to do an illegal act(eg: sharing the earnings of smuggling business) is

  1. Valid
  2. Void
  3. Voidable
  4. Contingent

 

Answer: (B) Void

 

Q.4. 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

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

 

Answer: (B) A is entitled to recover Rs.20000 each from B and C

 

Q.5. Can a person who is usually of unsound, but occasionally of sound mind, make a contract?

  1. Yes, he can always make a contract
  2. Yes, but only when he is sound mind
  3. No, he cannot make contract
  4. Can't be determined

 

Answer: (B) Yes, but only when he is sound mind

 

Q.6. Which is the following is false? An acceptance:

  1. Must be communicated
  2. Must be absolute and unconditional
  3. Must accepted by a person having authority to accept
  4. May be presumed from silence of offeree

 

Answer: (D) May be presumed from silence of offeree

 

Q.7. Which is the following is false? Consideration:

  1. Must move at the desire of the promisor
  2. May move from any person
  3. Must be illusory
  4. Must be some value

 

Answer: (C) Must be illusory

 

Q.8. Consideration may be

  1. Past
  2. Present
  3. Future
  4. All of the above

 

Answer: (D) All of the above

 

Q.9. Consent is not said to be free when it is caused by

  1. Coercion
  2. Undue influence
  3. Fraud
  4. All of these

 

Answer: (D) All of these

 

Q.10. In case of illegal agreements, the collateral agreements are;

  1. Void
  2. Valid
  3. Voidable
  4. Any of these

 

Answer: (B) Valid