Unit VI · UGC NET Law PYQCommercial Law

Which of the following statement is correct?

1. (a)An agreement made without consideration is voidable
2. (b)An agreement made without consideration is void✓
3. (c)A contract made without consideration is valid
4. (d)A contract made without consideration is void

A minor is allowed to enforce a contract:

1. (a)Which of some benefit to him and under which he is required to bear no obligation
2. (b)Which is beneficial to him without any expense✓
3. (c)Which is of some importance to him and under which he stands to gain some material gain
4. (d)Which is of no benefit to him and under which he is required to bear obligation

Arrange the sequence of the following events in which they occur in a contract, using the code:

(1) Communication of offer (2) Invitation of offer (3) Fraud (4) Damages

Codes:

1. (a)2 — 1 — 3 — 4✓
2. (b)1 — 2 — 3 — 4
3. (c)4 — 2 — 1 — 3
4. (d)4 — 3 — 2 — 1

Some, all or none of the following statements are right. Answer using the code.

(1) A minor is liable for breach of a contract to which he is a party

(2) A minor is liable to pay for necessaries for his spouse

(3) Supply of necessaries to a minor is a contract

(4) Necessaries supplied to a minor need not be according to his station in life, for the supplier to claim damages

Codes:

1. (a)All statements are right
2. (b)All statements are wrong
3. (c)Only statement (iii) is right✓
4. (d)Only statement (ii) is wrong

Promissory estoppel against Government agencies is decided in:

1. (a)Tweedle v. Atkinson, 4 L.T. 468
2. (b)Button v. Poole, 83 L.R. 523
3. (c)Delhi Clothi and General Mills Ltd. v. Union of India, AIR 1987 SC 2414✓
4. (d)Kedar nath v. Garie Mohd. ILR (1886) 14 Col 64

Which one of the following statements is right?

1. (a)Two or more persons are said to consent when they agree upon something in some sense
2. (b)Two or more persons are said to consent when they agree upon the same thing in the same sense✓
3. (c)Two or more persons are said to enter into a contract when they agree upon the same thing in the same sense
4. (d)Two or more persons are said to enter into a quasi contract when they agree upon the same thing in the same sense

An acceptance given by post:

1. (a)can be revoked at any time
2. (b)cannot be revoked at all
3. (c)can be revoked, if it does not reach to the proposer✓
4. (d)can be revoked, even if it comes to the knowledge of proposer

A promise to pay time barred debt is:

1. (a)Not enforceable
2. (b)Enforceable at the discretion of debtor
3. (c)Enforceable under exception✓
4. (d)None of the above

Which of the following statements is correct?

1. (a)Third party can always sue for breach of contract
2. (b)Wagering agreements are illegal
3. (c)When consent is not free, agreement will always be voidable
4. (d)Catalogue is an invitation to offer✓

Two statements are given in this question. One is labeled a Assertion (A) and the other is labled as Reason (R). Examine these statements and select the correct combination of the codes. Assertion (A): Partial acceptance is not acceptance Reason (R): Acceptance must be absolute and unconditional

1. (a)Both (A) and (R) are correct✓
2. (b)Both (A) and (R) are wrong
3. (c)(A) is correct, but (R) is wrong
4. (d)(A) is false, but (R) is correct

A counter offer is:

1. (a)an invitation to offer
2. (b)an acceptance to offer
3. (c)a rejection of the offer✓
4. (d)a conditional acceptance

An agreement with minor is void, hence:

1. (a)Minor is never allowed to enforce such agreement
2. (b)Minor is allowed to enforce such agreement, if it was made for his benefit
3. (c)Minor is always allowed to enforce such agreement
4. (d)Minor is allowed to enforce such contract when other party makes no objection✓

Consensus ad idem means:

1. (a)Common Intention
2. (b)Meeting of Minds✓
3. (c)Common Object
4. (d)None of the above

Two statements are given in this question. One is labelled as Assertion (A) and the other is labelled as Reason (R). Examine these statements and select the correct combination of the codes. Assertion (A): Collateral transaction to wagering agreement is enforceable by law. Reason (R): Wagering agreement is not illegal.

1. (a)Both Assertion (A) and Reason (R) are correct✓
2. (b)Assertion (A) is correct, but Reason (R) is wrong
3. (c)Both Assertion (A) and Reason (R) are wrong
4. (d)Reason (R) is correct, but Assertion (A) is wrong

Match List-I with List-II and select and correct answer using the codes given below:

List-I:

A. General offer

B. Contract by telephonic communication

C. Acceptance given in ignorance of proposal

D. Remoteness of damages

List-II:

1. Bhagwandas v. Girdharilal

2. Lalman v. Gauridatt

3. Carlil v. Carbolic Smoke Ball Co.

4. Hadley v. Baxendale

Codes:

1. (a)A-1, B-2, C-3, D-4
2. (b)A-3, B-1, C-2, D-4✓
3. (c)A-2, B-4, C-1, D-3
4. (d)A-1, B-4, C-3, D-2

An agreement enforceable at law is a:

1. (a)Legal agreement
2. (b)Moral agreement
3. (c)Acceptance
4. (d)Contract✓

Every promise and every set of promises, forming the consideration for each other is:

1. (a)Contract
2. (b)Offer
3. (c)Acceptance
4. (d)Agreement✓

In a minor's agreement:

1. (a)Minor cannot be estopped from pleading his minority
2. (b)Contract is void
3. (c)Minor is estopped from pleading his minority
4. (d)Both (A) and (B) are right✓

The age of majority for the purpose of Contract Act is:

1. (a)21 years for boys and girls
2. (b)18 years for boys and girls✓
3. (c)21 years for girls
4. (d)20 years for boys

Which of the following statements are true?

Minor's contract can be ratified on attaining majority

Minor's contract cannot be ratified on attaining majority

Minor's contract can be ratified jointly by both the parties to the contract

Minor is not liable under minor's contract Codes:

1. (a)1 and 3
2. (b)2 and 4✓
3. (c)1 and 2
4. (d)2 and 3

Arrange the following concepts in sequence in which they appeared. Use the codes given below:

Offer by x to y

Undue influence of x over y

Demand of damages by y from x

Acceptance of the offer by y Code:

1. (a)1, 2, 3, 4
2. (b)1, 4, 3, 2
3. (c)2, 1, 4, 3✓
4. (d)2, 4, 1, 3

Which one of the following pairs is correctly matched?

1. (a)In India, consideration must follow from promisee only
2. (b)In India, consideration must follow from only promisor or only promisee
3. (c)In India, consideration must follow from promisor or any other person
4. (d)In India, consideration must follow promisee or any other person✓

Arrange the following concepts in a sequence in which they appeared. Use the code given below:

Right of an unpaid seller to stop goods in transit

Agreement to sell goods

Damages for breach of contract of sale of goods

Conditions and warranties Code:

1. (a)2, 4, 3, 1
2. (b)4, 2, 1, 3✓
3. (c)2, 1, 4, 3
4. (d)1, 2, 4, 3

An offer and an acceptance to it must be in the

1. (a)same time
2. (b)same place
3. (c)same sense✓
4. (d)none of the above

Which of the following statements are true?

Past consideration is no consideration under Indian and English Law

Post consideration is no consideration under Indian Law

Past consideration is no consideration under English Law

Past consideration is made in past Codes:

1. (a)1 and 2
2. (b)2 and 3
3. (c)3 and 4✓
4. (d)4 and 1

Arrange the following concepts in which they appeared. Use the code given below:

Invitation to offer

Damage

Offer

Damages Codes:

1. (a)1, 3, 2, 4✓
2. (b)1, 3, 4, 2
3. (c)3, 1, 2, 4
4. (d)1, 4, 3, 2

Match n item in List-I with an item in List-II, using code given below: List-I: A. Capacity B. Damages C. Remedy D. Public policy List-II:

Breach

Unruly horse

Compensation

Sound mind Codes:

1. (a)A-4, B-3, C-2, D-1
2. (b)A-1, B-2, C-4, D-3
3. (c)A-3, B-4, C-1, D-2
4. (d)A-4, B-3, C-1, D-2✓

Which one of the following pairs does not match?

1. (a)Novation of contract — Section 62
2. (b)Agreement in restraint of legal proceedings — Section 29✓
3. (c)Tender of performance — Section 38
4. (d)Unlawful object and consideration — Section 23

Which one of the following is correct statement?

1. (a)Every agency is partnership
2. (b)Every partnership is agency✓
3. (c)Every partnership is limited company
4. (d)Every private limited company is partnership

A and B are friends. A told to B to show him a new movie in a posh theatre, upon which A promised to offer him lunch in a 5 star hotel. But A gave lunch to B in a road side dhaba. Decide A's liability using codes given below.

1. (a)A is liable because there was intention to create legal relation between A and B
2. (b)A is not liable because there was no intention to create legal relation between A and B✓
3. (c)B was mistaken
4. (d)A was mistaken

Arrange the following concepts in sequence in which they occur, using codes given below:

Offer is communicated

Counter offer is made

Offer is rejected

Counter offer is accepted

1. (a)1, 2, 3, 4
2. (b)1, 3, 2, 4✓
3. (c)1, 2, 3, 4
4. (d)2, 1, 3, 4

Following are essentials of valid contract:

Parties to contract should have capacity to contract

Parties to contract should have legal mind

Parties to contract should be intelligent

Invitation to offer should be accepted Find correct answer, using codes:

1. (a)Only (i) is correct✓
2. (b)Only (i) and (ii) are correct
3. (c)all of above are correct
4. (d)Only (ii) is correct

Find correct legal principle from following statements:

1. (a)A company may do an act which is necessary for an incidental to the attainment of its objects or which is otherwise not authorized by the Act
2. (b)A company may not do act which is necessary for or incidental to the attainment of its objects which is otherwise not authorized by the Act
3. (c)A company may do act which is necessary for or incidental to the attainment of its objects or which is otherwise not authorized by the Act✓
4. (d)A company may not do act which is unnecessary for or incidental to the attainment of its goals or which is otherwise barred by the Act

Read Assertion (A) and Reason (R) and with help of codes given below, point out the correct explanation. Assertion (A): A contract of sale may be absolute or conditional. Reason (R): There is no absolute condition for a contract of sale. Code:

1. (a)(A) and (R) are true and (R) is correct explanation of (A)
2. (b)(A) and (R) are true but (R) is not correct explanation of (A)
3. (c)(A) is true, but (R) is false✓
4. (d)(A) is false, but (R) is true

Find the correct legal statement from following statements:

1. (a)Every partner is liable, severally with all the other partners and jointly for all acts of the firm done while he is a partner
2. (b)Every partner is liable, joinly with all the other partners and severally for all acts of the firm done while he is a partner✓
3. (c)Every partner is liable only for acts done by him as acts of the firm done while he is a partner
4. (d)Sleeping partner is not liable for acts done by him as acts of the firm done while he is a partner

Read Assertion (A) and Reason (R) and with help of codes given below, point out the correct explanation. Assertion (A): It is the duty of the banker to be acquainted with the customer's handwriting. Reason (R): A banker must be handwriting expert. Code:

1. (a)(A) and (R) are true and (R) is correct explanation of (A)
2. (b)(A) and (R) are true but (R) is not correct explanation of (A)
3. (c)(A) is true, but (R) is false✓
4. (d)(A) is false, but (R) is true

X invites his friend Y on dinner but later on declined to arrange it on specified day.

1. (a)X is liable for breach of contract
2. (b)X is liable, if Y goes to the house of X and returns without dinner
3. (c)X is liable for breach of contract, if Y gets dinner in hotel
4. (d)X is not liable for breach of contract✓

Match List-I with List-II and select the correct answer using the codes given below the lists. List-I: A. Breach of contract B. Revocation of offer C. Consent D. Frustration List-II:

Impossible to perform

Same thing in the same sense

Compensation

Lapse of stipulated time Codes:

1. (a)A-1, B-3, C-4, D-2
2. (b)A-2, B-4, C-1, D-3
3. (c)A-3, B-1, C-2, D-4
4. (d)A-3, B-4, C-2, D-1✓

Which one of the following pairs does not match?

1. (a)Negotiable instrument — A piece of paper
2. (b)Negotiability — Acquisition of property by one's own conduct
3. (c)Nemo dot quod — Negotiable non Instruments✓
4. (d)Negotiable — Transfer by instrument simple delivery

Which of the following statements is wrong?

1. (a)A condition can become warranty when waived by buyer
2. (b)A condition can become warranty when buyer accepts goods
3. (c)A condition can never become warranty✓
4. (d)Under a condition, a buyer has right to reject goods

Essentials of valid contract is

1. (a)Meeting of minds✓
2. (b)Meeting of parties
3. (c)Meeting to discuss consideration
4. (d)Meeting to discuss proposal and acceptance

Read Assertion (A) and Reason (R) and with help of codes given below, point out the correct explanation. Assertion (A): A proposal, when accepted, results in an agreement. Reason (R): It is only after the acceptance of the proposal that a contract between the two parties can arise. Codes:

1. (a)Both (A) and (R) are true and (R) is good explanation of (A)✓
2. (b)Both (A) and (R) are true, but (R) is not a correct explanation of (A)
3. (c)(A) is true, but (R) is false
4. (d)(A) is false, but (R) is true

A minor is son of a beggar. He is told by a law professor that he would not be liable for any goods he purchases. The minor purchases a car and a bread loaf. Decide liability for payment of car and bread loaf, using codes given below.

1. (a)The minor is liable to pay price of car and bread loaf
2. (b)The minor is liable to pay reasonable compensation for car
3. (c)The minor is liable to pay price of bread
4. (d)The minor's parent/guardian is liable to pay reasonable compensation for bread loaf✓

Arrange following concepts in sequence in which they occur, using codes given below:

Offer

Acceptance

Damage

Damages Codes:

1. (a)4, 3, 2, 1
2. (b)1, 2, 4, 3
3. (c)1, 4, 2, 3
4. (d)1, 2, 3, 4✓

Find right answer from following statements:

1. (a)Every partnership is based on mutual agency✓
2. (b)Every agency is based on mutual partnership
3. (c)Every agent is a partner
4. (d)Every partner is a sleeping partner

Read Assertion (A) and Reason (R) and with help of codes given below, point out the correct explanation. Assertion (A): The doctrine of indoor management seeks to protect the company against the outsider. Reason (R): The company has right to privacy. Codes:

1. (a)Both (A) and (R) are true and (R) is correct explanation of (A)
2. (b)Both (A) and (R) are true, but (R) is not correct explanation of (A)
3. (c)(A) is true, but (R) is false✓
4. (d)(A) is false, but (R) is true

Choose correct Statement from following:

1. (a)Right against the goods can be exercised only by a paid seller
2. (b)Right against the goods can be exercised only by an unpaid seller✓
3. (c)Right against the goods can be exercised only by a paid buyer
4. (d)Right against the goods can be exercised only by an unpaid buyer

Match items in Table A with items in Table B, using codes given below: Table A: A. Prabhu Dayal v. Jwala Bank, ILR 1938 All. 634 B. Discharge from liability by cancellation C. Payment in due course D. Protest Table B:

Section 100

Section 10

Forgery of signature

Section 82 Code:

1. (a)A-1, B-3, C-2, D-4
2. (b)A-3, B-4, C-2, D-1✓
3. (c)A-4, B-3, C-2, D-1
4. (d)A-2, B-1, C-3, D-4

Under the Indian Contract Act, Acceptance of Proposal should be

1. (a)Conditional or Unconditional
2. (b)Conditional but not absolute
3. (c)Unconditional and absolute✓
4. (d)Unconditional but not absolute

Contractual liability arises, where

1. (a)There is offer and acceptance only
2. (b)There is intention to create legal relation✓
3. (c)There is loss to one party
4. (d)The loss of one party is the gain of other party

There may be a contract without consideration, if

1. (a)Agreements is in writing and registered
2. (b)Parties to the agreements are in near relationship
3. (c)Agreements is made due to natural love and affection
4. (d)All the above elements are presents✓

Which one of the following statements is true?

1. (a)Intimation of minimum price is proposal
2. (b)An agreements against public policy is voidable
3. (c)An agreements, the meaning of which is not certain is void✓
4. (d)Contingent contracts are illegal

Which one of the following pairs does not match?

1. (a)Definition and essentials of sale — E. & S 5:02 Ruben Ltd. v. Faire Bros., (1949) 1 KB 254
2. (b)Formalities of sale — Drumond & Sons v. Van Ingen, (1887) 12 App. Cases 284
3. (c)Conditions implied by trade and usage — Peter Darlington Partners Ltd. v. Gosho Co. Ltd. (1964) 1 Lloyds Rep. 149✓
4. (d)Sale by sample — Rawland v. Divall, (1923) 2 KB 500 CA

Which one of the following statements is true?

1. (a)The order contained in the bill of exchange may be conditional
2. (b)A bill of exchange must contain a request to pay
3. (c)Every bill of exchange is a promissory note
4. (d)The payee must be certain✓

For a valid contract acceptance should be

1. (a)absolute and qualified
2. (b)partial but unqualified
3. (c)absolute and unqualified✓
4. (d)absolutely qualified

Consideration must be legal

Consideration can be illegal Code:

1. (a)(i) and (ii) are correct
2. (b)(ii) and (iii) are correct✓
3. (c)(iii) and iv) are correct
4. (d)(i) and (iv) are correct

In Jyotindra Bhattachatjee v. Mrs. Sona Baton Bora, it was held that

1. (a)the onus of proving soundness of mind of a person always rests upon a person who alleges such state of mind of another person
2. (b)the onus of proving unsoundness of mind of a person always rests upon a person who alleges such state of mind of another person✓
3. (c)the onus of proving unsoundness of mind rests upon person of unsound mind
4. (d)the onus of proving unsoundness of mind is on the judge deciding the case involving person of unsound mind

Read Assertion (A) and Reason (R) and give the correct explanation with the help of codes given below: Assertion (A): Agreement is void when both parties are under mistake as to the matter of law. Reason (R): Parties entering into a contract are legally obliged to know the law relating to the contract. Code:

1. (a)(A) and (R) are correct and (R) is correct
2. (b)(A) is correct, but (R) is wrong
3. (c)(R) is correct, but (A) is wrong
4. (d)Both (A) and (R) are wrong✓

Which of the following statements are correct? Answer using codes given below: In order that a person can be called a holder in due course, he must show:

that he is the drawer of the negotiable instrument

that he has obtained it without consideration

that he has obtained it before the maturity of the negotiable instrument

that he has obtained the negotiable instrument in good faith Codes:

1. (a)1 and 2 are correct
2. (b)2 and 3 are correct
3. (c)3 and 4 are correct✓
4. (d)1 and 4 are correct

A is liable to pay both sums as it is a promise between A and grocer

A is not liable to pay either of the sums as both of them are joint and not separate

1. (a)1 and 2✓
2. (b)1 and 3
3. (c)2 and 4
4. (d)3 and 4

"X makes an offer to Y. X dies the next day, but Y does not know of the death. Y sends a communication to the address of X accepting the offer". Is the agreement formed between the parties? Choose the correct answer.

Requirements of offer followed by acceptance are met

Absence of knowledge of death will not invalidate the agreement

No meeting of minds, which does not render it to a agreement

Death of the offerer reduces it to nullity Codes:

1. (a)1 and 3
2. (b)1 and 2
3. (c)3 and 4✓
4. (d)2 and 4

Match items of List-I with those of List-II and choose the correct answer using codes: List-I A. Food corporation of India v. Ram keshav Yadav B. Keday Nath Bhattachariji v. Gori Mohammed C. K. Balakrishna v. K.kamalam D. Satyabrata Goshe v. Magniram Bangur & Co. List-II

Impossibility of performance

Capacity of minor to enter into contract

Offer and acceptance

Consideration Codes:

1. (a)A-4, B-2, C-3, D-1
2. (b)A-4, B-3, C-2, D-1✓
3. (c)A-3, B-4, C-2, D-1
4. (d)A-1, B-2, C-3, D-4

Agreement without consideration is valid under Indian Law. Among the following statements choose the one which is against this rule:

1. (a)When agreement written exist on accounts of natural love and affection
2. (b)When the consideration is too inadequate✓
3. (c)Where the consideration is past one
4. (d)Where the consideration is from third party

Choose the incorrect combination:

1. (a)Proposal + Acceptance = promise
2. (b)Promise + Consideration = Agreement
3. (c)Agreement + Enforceability = Contract
4. (d)Proposal + Consideration = Acknowledge✓

Match List-I with List-II and select the correct answer using the codes given below the Lists: List-I A. Doctrine of unjust Enrichment B. Doctrine of absolute contract C. Doctrine of Estoppel D. Doctrine of Pari Delicto List-II

Section 11 of contract Act

Section 56

Contract 72

Section 23 Code:

1. (a)A-1, B-3, C-2, D-4
2. (b)A-2, B-3, C-1, D-4
3. (c)A-3, B-2, C-1, D-4✓
4. (d)A-4, B-2, C-3, D-1

Which one statement is correct from the following statements?

1. (a)A director of a company as a director is a servant of the company
2. (b)A director is an agent of his company✓
3. (c)A director is not a fiduciary person of his company
4. (d)A director is master of his company

Match List-I with List-II and select the correct answer using codes given below. Answer in context of the Negotiable Instruments Act: List-I A. Time of place for presentment B. Cheques are payable in demand C. Holder of a negotiable instrument D. Fictitious drawer of payee List-II

Section 19

Section 8

Section 61

Section 42 Code:

1. (a)A-1, B-4, C-2, D-3
2. (b)A-3, B-2, C-4, D-1
3. (c)A-2, B-3, C-4, D-1
4. (d)A-2, B-3, C-1, D-4

Which of the following statement is correct?

1. (a)Open cheques are those which cannot be directly presented to the drawee bank for payment across the counter
2. (b)A 16-year old girl can draw a cheque✓
3. (c)Indorsement is written on front of a cheque
4. (d)Indorsement cannot be made by the holder of a negotiable instrument

Which of the following statements is correct?

1. (a)A contract is voidable because it was caused by a mistake as to any law in force in India
2. (b)A mistake as to law not in force in India has the same effect as a mistake of fact✓
3. (c)A contract is voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact
4. (d)Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is not void

An agreement without consideration is valid, unless:

1. (a)It is in writing and registered
2. (b)Is a promise to compensate for something done
3. (c)It is made by two minors✓
4. (d)Is a promise to pay a debt barred by limitation law

A proposal is revoked:

1. (a)By the notice of revocation of the proposal
2. (b)By the lapse of a reasonable time if the time is prescribed in the proposal
3. (c)By acceptance of a condition precedent to acceptance
4. (d)By the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance

Which of the following statement is incorrect?

1. (a)A cheque is a bill of exchange, but every bill of exchange is not a cheque
2. (b)A cheque is always payable on demand
3. (c)A cheque is a conditional order from the drawer of a cheque to the drawee bank to make payment of money only✓
4. (d)A post dated cheque cannot be considered as a valid cheque till the date of maturity

Read Assertion (A) and Reason (R) and answer using the code given below: Assertion (A): For the proper exercise of the functions of a director, it is essential that he be distinterested, that is, be free from any conflicting interest. Reason (R): Conflict is injurious to mental and physical health. Code:

1. (a)Both (A) and (R) are correct, and (R) is correct reason for (A)
2. (b)(A) is correct, but (R) is wrong
3. (c)Both (A) and (R) are incorrect✓
4. (d)Both (A) and (R) are correct, but (R) is not correct legal reason for (A)

Match the items of List-I with the items of List-II and choose the correct answer from the code given below: List-I A. Section 54 of the Sale of Goods Act B. Section 40 of the Sale of Goods Act C. Section 37 of the Sale of Goods Act D. Section 15 of the sale of Goods Act List-II

Risk where goods are delivered at distant place

Delivery of wrong quantity

Sale by description

Rights of unpaid seller against the goods Code:

1. (a)A-1, B-4, C-2, D-3
2. (b)A-4, B-1, C-2, D-3✓
3. (c)A-4, B-1, C-3, D-2
4. (d)A-2, B-3, C-1, D-4

"Consideration means a reasonable equivalent of other valuable benefit passed on by the transferor to the transferee Similarly, when the word 'Consideration' was qualified by the word 'adequate' it makes the consideration stronger so as to make it sufficient and valuable having reagard to the facts, circumstances and necessitites of the case." Above Principle was laid down in

1. (a)Sonia Bhatia v. State of U.P.✓
2. (b)LIC of India v. Pushapa P. Mansukhani
3. (c)Dipraich Sugar Mills Ltd.v. Mazdur Union
4. (d)A.B.C. Laminart Pvt. Ltd. v. A.P. Agencies, Salem.

Which of the following statements is right?

1. (a)An agreement not to do an impossible act in itself is void
2. (b)An agreement to do a possible act is void
3. (c)An Agreement to do and act impossible in itself is void✓
4. (d)A contract to do an act, which after the contract is made becomes impossible, or, by reason of some event which the promisor could not prevent to be unlawful, becomes valid, when the act becomes impossible or unlawful

Match the items of List-I with the items of List-II and choose the correct answer from the code given below: List-I A. Remoteness of damage B. Proof of loss to be given to claim special damages C. Loss of profit is special loss D. Consequences of delay List-II

Chief Secretary, State of Gujarat v. Kothari and Associates

Madras Railway Co. v. Govind Rau

Karasandas H. Thacker v. Saran Engg. Co. Ltd.

Union of India v. Steel Stock Holders. Code:

1. (a)A-1, B-2, C-4, D-3
2. (b)A-2, B-1, C-3, D-4✓
3. (c)A-2, B-3, C-1, D-4
4. (d)A-4, B-1, C-3, D-2

Read Assertion (A) and Reason (R) and answer using codes given below: Assertion (A): It shall not be a defence in a prosecution for an offence under Section 138 of the Negotiable Instrument Act that the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment for the reason stated in that Section. Reason (R): Above assertion is laid down in Section 140 of the Negotiable Instrument Act. Code:

1. (a)Both (A) and (R) are wrong
2. (b)Both (A) and (R) are right and (R) is correct explanation of (A)✓
3. (c)(A) is right, but (R) is wrong
4. (d)(R) is right, but (A) is wrong

Match List-I with List-II and select the correct answer using codes given below: List-I (Exceptions to doctrine of indoor management) A. Knowledge of irregularity B. Suspicion of irregularity C. Forgery D. Acts outside apparent authority List-II (Judgement)

T.R. Pratt Ltd. v. M.T. Ltd.

Ruben v. Great Fingall Consolidated

Anand Behari Ltd. v. Dinshaw & Co.

Morris v. Kanssen Code:

1. (a)A-2, B-3, C-1, D-4
2. (b)A-4, B-1, C-3, D-2
3. (c)A-1, B-4, C-2, D-3
4. (d)A-4, B-1, C-2, D-3✓

Which of the following statement is correct?

1. (a)A condition is a stipulation collateral to any purpose of the contract
2. (b)A warranty is a stipulation collateral to any purpose of the contract
3. (c)When a buyer waives a warranty, it becomes a condition
4. (d)Where a contract of sale is not servable and the buyer has accepted the goods or part thereof, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty and not as a ground for rejecting the goods and treating the contract as repudiated, unless there is a term of the contract, express or implied to that effect✓

Read Assertion (A) and Reason (R) and answer using codes given below: Assertion (A): Notwithstanding a contract between the partners, a partner shall not indemnify the firm for any loss caused to it by his wilful neglect in the conduct of the business of the firm. Reason (R): Because Section 13(f) of Indian Partnership Act stipulates so. Codes:

1. (a)Both (A) and (R) are right and (R) is correct explanation of (A)
2. (b)(A) and (R) are wrong✓
3. (c)(A) is right and (R) is wrong
4. (d)(R) is right and (A) is wrong

Read Assertion (A) and Reason (R) and with the help of codes given below, point out the correct explanation. Assertion (A): In Mohori Bibee v. Dharmodas Ghose, Sir Lord North observed: "The question whether a contract is void or voidable does not presuppose the existence of a contract within the meaning of the (Contract) Act and can arise in the case of an infant." Reason (R): Ever since this decision in Mohori Bibee v. Dharmodas Ghose Case, it has been doubted that a minor's agreement is void. Codes:

1. (a)Both (A) and (R) are right and (R) is correct explanation of (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is wrong, but (R) is right
4. (d)(A) is right, but (R) is wrong

"An offer need not be made to all the world which is to ripen into a contract with anybody who comes forward and performs the condition. It is an offer to become liable to anyone who, before it is retracted, performs the conditions, and although the offer is made to the world, the contract is made with that limited portion of the public who come forward and perform the condition on the faith of the advertisement." Above statement is attributed to

1. (a)Bowen L.J. in Weeks v. Tybald
2. (b)Bowen L.J. in Carlill v. Carbolic Smoke Ball Co.✓
3. (c)Bowen L.J. in Lalman Shukla v. Gauri Dutt
4. (d)Bowen L.J. in Malraju Lakshmi Venhayamma v. Venkata Narasimha Appa Rao

The court will enquire whether consideration was equivalent to the promise which was given in return

Inadequacy of consideration may be taken into account by the court in determining the question whether the consent of promisor was freely given Codes:

1. (a)1, 2, 3 and 4 are correct
2. (b)Only 2, 3 and 4 are correct
3. (c)Only 3 and 4 are correct
4. (d)Only 4 is correct✓

Read Assertion (A) and Reason (R) and answer using codes given below: Assertion (A): It is well settled that if and when there is frustration, the dissolution of the contract does not occur automatically. It depends on the ground of repudiation or breach, or on the choice or election of either party. It does not depend on the effect of what has actually happened on the possibility of performing the contract. Reason (R): Because Lord Wright laid down this principle in Denny, Mott & Dickson Ltd. v. James B. Fraser & Co. Ltd. Codes:

1. (a)Both (A) and (R) are right and (R) is correct explanation of (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is right, but (R) is wrong
4. (d)(A) is wrong, but (R) is right

Match List-I with List-II and select the correct answer using codes given below: List-I (Principle) A. Illegal condition of depositing a cheque B. Filing a complaint for dishonour of a cheque against a company. C. Negligence in collection of a forged demand draft D. Liability of a collecting bank for negligence. List-II (Judgement)

United Bank of India v. Bank of Baroda.

Central Bank of India Ltd. v. V. Gopinathan Nair

S. Ramasamy M.D. v. T. Ayyappa

Pradeep Bhauraoji Lanarkar v. The State of Maharashtra. Code:

1. (a)A-4, B-3, C-2, D-1
2. (b)A-3, B-4, C-1, D-2
3. (c)A-4, B-3, C-1, D-2✓
4. (d)A-2, B-1, C-3, D-4

Which of the following statement is correct?

1. (a)A promissory note or a bill of exchange in which time for payment is specified is payable on demand
2. (b)If the endorser signs his name only, the endorsement is said to be "in full"
3. (c)Where an instrument may be construed either as a promissory note or a bill of exchange, the holder may at his election treat it as either, and the instrument shall be then forward treated accordingly✓
4. (d)If the amount undertaken or ordered to be paid is stated differently in figures and in words, the amount stated in figures shall be the amount undertaken or ordered to be paid

Read Assertion (A) and Reason (R) and using codes given below, write the correct answer. Assertion (A): The creditors of a limited company are particularly happy due to doctrine of indoor management, it would be happier still if the company could escape liability by denying the authority of the officials to act on its behalf. Reason (R): Because L.C.B. Gower has written so. Codes:

1. (a)Both (A) and (R) are right and (R) is the correct explanation of (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is right, (R) is wrong
4. (d)(R) is right, (A) is wrong

Read Assertion (A) and Reason (R) and write the correct answer by using codes given below: Assertion (A): The essence of sale is the transfer of goods in property from the seller to the buyer. Reason (R): Because Section 4 of sale of Goods Act stipulates so. Codes:

1. (a)Both (A) and (R) are right and (R) is correct explanation of (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is right and (R) is wrong
4. (d)(R) is right and (A) is wrong

Match the items of List-I with the items of List-II and choose the correct answer from the code given below: List-I A. Proposal B. Invitation to make an offer C. Communication of acceptance of offer by acceptor himself D. Revocation of offer List-II

Grainger & son v. Gough

Maharashtra Rajya Sahakari Kappas Utpadak Vipanan Mahasabha Ltd. v. Managa Bhaga Chaudhary

Henthorn v. Fraser

Powell v. Lee Code:

1. (a)A-2, B-1, C-4, D-3✓
2. (b)A-1, B-2, C-4, D-3
3. (c)A-2, B-1, C-3, D-4
4. (d)A-4, B-3, C-1, D-2

Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below: Assertion (A): An agreement made with consideration is void unless it is in writing are registered. Reason (R): Because Section 25(1) of the Indian Contract Act stipulates so. Code:

1. (a)Both (A) and (R) are true and (R) is the correct explanation of (A)✓
2. (b)Both (A) and (R) are true, but (R) is not the correct explanation of (A)
3. (c)(A) is true, but (R) is false
4. (d)(A) is false, but (R) is true

Which of the following statement is correct?

1. (a)A person who wrongfully rescinds a contract is entitled to compensation for any damage which he sustained through the non-fulfilment of the contract
2. (b)A person who rightfully rescinds a contract is not entitled to compensation for any damage which he has sustained through the non-fulfilment of the contract
3. (c)A person who rightfully rescinds a contract is entitled to compensation for any damage which he has sustained through the non-fulfilment of the contract✓
4. (d)A person who rightfully rescinds a contract is entitled to compensation for any damage which he has not sustained through the non-fulfilment of the contract

Every person is competent to contract

1. (a)Who is of the age of minority according to law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject
2. (b)who is of the age of majority according to law to which he is not subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject
3. (c)who is of the age of majority according to law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject
4. (d)Who is of the age of majority according to law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject✓

Match the items of List-I with the items of List-II and choose the correct answer from the code given below: List-I (Types of Vitiating elements of a contract) A. Undue influence B. Misrepresentation C. Fraud D. Mistake List-II (Relevant case-law)

Nursey Spg. and Wvg. Co Ltd. Re

Jaggan Nath v. Secy of State for india

Lancashire loans v. Black

Deny v. Peek Code:

1. (a)A-2, B-4, C-3, D-1
2. (b)A-1, B-3, C-4, D-2
3. (c)A-3, B-1, C-4, D-2✓
4. (d)A-3, B-1, C-2, D-4

Match List-I with List-II and select the correct answer using the codes given below: List-I (Principles of mutual rights and liabilities of partners) A. Remuneration to a partner in absence of an agreement on this matter B. Fixation of remuneration by agreement in respect of a partner does not alter his status as a partner C. Interest on the capital of a partner D. Action against a partner for balance to another List-II (Relevant case-law)

Md. Abdul Sattar v. State of Andhra Pradesh

Ghisulal v. Ghumbirmal

Shelat Brothers v. Nanalal Harilal Shelat

Bhagchand v. Kaluram @ Moolchand Code:

1. (a)A-4, B-2, C-1, D-3
2. (b)A-3, B-1, C-2, D-4
3. (c)A-1, B-3, C-4, D-2
4. (d)A-3, B-1, C-4, D-2✓

Match the items of List-I with the items of List-II and choose the correct answer from the code given below: List-I A. Laps of offer B. General offer C. Communication of offer D. Implied offer List-II

Week v. Tybald

Henthon v. Fraser

Coffe Board v. CCT

Lalman Shukla v. Gauri Dutt Code:

1. (a)A-4, B-3, C-1, D-2
2. (b)A-2, B-1, C-3, D-4
3. (c)A-2, B-1, C-4, D-3✓
4. (d)A-1, B-2, C-4, D-3

"Consideration is the recompense given by the party contracting to the other": Above definition given by

1. (a)Pollack
2. (b)Justice Patterson
3. (c)Cheshire and Fifoot
4. (d)Blackstone✓

Which of the following statement is correct?

1. (a)Acceptance may be made in the manner prescribed or indicated by the offerer
2. (b)Acceptance has to be made in the manner prescribed or indicated by the offerer
3. (c)Acceptance has to be made in the manner prescribed or indicated by the offerer✓
4. (d)Acceptance need not be made in the manner prescribed or indicated by the offerer

Read Assertion (A) and Reason (R) and answer using the code given below: Assertion (A): A contract is a property in the nature of a promise supported by some consideration upon which either the remedy of specific performance of that of damage is available. Reason (R): Above principal is laid down in sunrise Associates v. Govt, of NCT of Delhi? Code:

1. (a)Both (A) and (R) are correct
2. (b)Both (A) and (R) are incorrect✓
3. (c)(A) is correct, but (R) is incorrect
4. (d)(R) is correct, but (A) is incorrect

Which of the following statement is correct?

1. (a)Notwithstanding any express contract the seller of goods is not bound to deliver them until the buyer applies for delivery
2. (b)Apart from any express contract, the seller of goods is not bound to deliver them until the buyer applies for delivery✓
3. (c)Apart from any express contract the seller of goods is bound to deliver them until the buyer applied for delivery
4. (d)Apart from any express contract, the buyer of goods is bound to deliver them when the seller applies for delivery

Read Assertion (A) and Reason (R) and give the correct answer by using the code given below: Assertion (A): A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer. But not afterwards. Reason (R): Section 5 of the Indian contract Act 1872, deals with the revocation of proposals and acceptances. Code:

1. (a)Both (A) and (R) are correct, but (R) is not related to (A)
2. (b)(A) is correct, but (R) is wrong
3. (c)(A) is wrong, but (R) is correct
4. (d)Both (A) and (R) are correct, and (R) is the correct explanation of (A)✓

a motive for any promise

something of value in the eye of law Code:

1. (a)1 and 3 are correct
2. (b)1 and 4 are correct✓
3. (c)2, 3 and 4 are correct
4. (d)3 and 4 are correct

Consider the following statement and give correct answer with the help of code given below: The case of Mohari Bibee v. Dharmodas Ghose:

has laid down that a minor's contract become valid when he attains majority

is the decision of the Supreme Court of India regarding minor's contract

is the decision of Privy Council regarding voidness of minor's contract

has laid down that contract without consideration is void Code:

1. (a)3 and 4 are correct, but 1 and 2 are incorrect
2. (b)1 and 2 are correct, but 3 and 4 are incorrect
3. (c)3 is correct, but 1, 2 and 4 are incorrect✓
4. (d)2 and 4 are correct, but 1 and 3 are incorrect

Read Assertion (A) and Reason (R) and give the correct answer with the help of codes given below: Assertion (A): Acceptance is to offer what a lighted match is to a train a gunpowder. Reason (R): Acceptance cannot be separate from offer. Code:

1. (a)(A) is true but (R) is false✓
2. (b)(A) is false but (R) is true
3. (c)Both (A) and (R) are true, and (R) is the correct explanation of (A)
4. (d)Both (A) and (R) are true but (R) is not the correct explanation of (A)

Under the Indian Contact Act, 1872. Which one of the following is not true, by one who does not fall in the meaning of fraud:

1. (a)Active concealment of fact
2. (b)Suggestion, as a fact, of which is not true, by one who does not believe it to be true
3. (c)Positive assertion of unwarranted statements✓
4. (d)A promise made without any intention of performing it

Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below: Assertion (A): The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. Reason (R): Section 4 of the Indian Contract Act, 1872 deals with the issue of completeness of communications. Codes:

1. (a)Both (A) and (R) are correct, but (R) is not related to (A)
2. (b)(A) is correct, but (R) is false
3. (c)(R) is correct, but (A) is false
4. (d)Both (A) and (R) are true and (R) is the correct explanations of (A)✓

Match the items of List-I with the items of List-II and choose the correct answer from the code given below: List-I (Section of Indian Contract Act 1872) A. Section 2(f) B. Section 2(e) C. Section 2(a) D. Section 2(c) List-II (Definition)

Proposal

Promisor and Promisee

Reciprocal Promises

Agreement Code:

1. (a)A-1, B-3, C-2, D-4
2. (b)A-3, B-4, C-2, D-1
3. (c)A-3, B-4, C-1, D-2✓
4. (d)A-4, B-2, C-3, D-1

A minor fraudulently misrepresenting his age is stopped from denying the truth of his statements

Estoppel does not operate to render a statute ineffective and so minor's agreements is always void Choose the correct answer from the code given below:

1. (a)2 and 3
2. (b)1 and 3✓
3. (c)1 and 2
4. (d)1, 2 and 3

The communication of an acceptance is complete as against the proposer

1. (a)when it is posted to him
2. (b)when it comes to the knowledge of the proposer✓
3. (c)when the letter containing acceptance is received by the proposer
4. (d)when it is put in the course of transmission, so as to be out of the acceptor's power

The inadequacy of consideration will be taken into account by a court of law

1. (a)when the promisor expresses his desire to get maximum return for his promise
2. (b)when the promisor performs his promise
3. (c)when fraud, coercion or undue influence in the formation of the contract is pleaded✓
4. (d)always as the discretion of the Court

The principle 'Restitution stops where repayment begins' can be applied against

1. (a)an alien enemy only
2. (b)minors only✓
3. (c)lunatics and idiots only
4. (d)an incapable person

A valid contract can be entered into between parties under Indian Contract Act. Which of the following gives legal recognition to such contract.

Section 10-A of Information Technology Act

Section 65-B of Indian Evidence Act

Section 1(4) of Information Technology Act

Section 63 of Indian Evidence Act Choose the correct option:

1. (a)1 and 4
2. (b)1 and 2✓
3. (c)1 and 3
4. (d)3 and 4

Given below are two statements - One is labelled as Assertion (A) and the other is labelled as Reason (R): Assertion (A): The liability of the surety is co-executive and it cannot go beyond the terms of guarantee. Reasons (R): The rights and liabilities of a surety and borrower are different and distinct and everything depends upon its terms of guarantee. In the light of the above two statements choose the correct option:

1. (a)Both (A) and (R) are true and (R) is the correct explanation of (A)✓
2. (b)Both (A) and (R) are true and (R) is not the correct explanation of (A)
3. (c)(A) is true but (R) is false
4. (d)(A) is false but (R) is true

"An offer cannot be accepted unless it was brought to the knowledge of the person to whom it is made". This was laid down in the case of:

1. (a)Lalman Shukla v. Gauri Dutt✓
2. (b)Balfour v. Balfour
3. (c)Mcgregor v. Mcgregor
4. (d)Carlill v. Carbolic Smoke Ball Co

Arrange the provisions of the Indian Contract Act 1872 in chronological order (Section wise): (1) Who are competent to contract (2) Effect of mistakes as to law (3) What agreement are contracts (4) Agreements in restraint of marriage is void Choose the correct answer from the options given below:

1. (a)(3), (1), (4), (2)
2. (b)(1), (3), (2), (4)
3. (c)(3), (1), (2), (4)✓
4. (d)(1), (3), (4), (2)

Which one of the following is correct?

1. (a)A public company can be formed with a minimum of nine persons
2. (b)A private company can be formed with two or more persons✓
3. (c)Memorandum of Association is not required for registration of company
4. (d)Articles of Association is not required for registration of a company

Which of the following is false?

1. (a)A contract is frustrated where the actual and specific subject matter of the contract has ceased to exist
2. (b)A contract will frustrate where circumstances arise which make the performance of the contract impossible in the manner contemplated
3. (c)A contract which required personal performance by promisor is frustrated on the death of the promisor
4. (d)Ceasing of subject matter of contract does not frustrate the contract✓

Choose the correct answer from the options given below: (A) An agreement without consideration is a void contract (B) An agreement in restraint of marriage is a voidable contract (C) An unmeaning agreement is a void contract (D) An agreement to do impossible acts is a voidable contract (E) An agreement in restraint of legal proceeding is a void contract

1. (a)A and C only
2. (b)B and D only
3. (c)A, C and E only✓
4. (d)E only

Which of the following is incorrect?

1. (a)An agreement not enforceable by law is said to be voidable✓
2. (b)An agreement enforceable by law is a contract
3. (c)Every promise and every set of promises forming the consideration for each other is an agreement
4. (d)An agreement not enforceable by law is said to be void

"I promise to pay B Rs. 50,000/- and to deliver him my black horse on 1st March next." This is:

1. (a)A promissory note
2. (b)A bill of exchange
3. (c)An instrument payable on demand
4. (d)Not a promissory note✓

When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted:

1. (a)Becomes an agreement
2. (b)Becomes a promise✓
3. (c)Becomes a contract
4. (d)Becomes a consideration

Where an option to purchase land was exercisable by notice, in which of the following cases, it was held that the mere posting of the notice which was never delivered, was not a valid exercise of the option?

1. (a)Ram Das Chakrabarti V/s Cotton Ginning Co. Ltd (1887)
2. (b)J.K. Enterprises V/s State of M.P. (1997)
3. (c)Hyde V/s Wrench (1840)
4. (d)Holwell Securities Ltd. V/s Hughes (1974)✓

Match List-I with List-II: List-I A. Rose and Frank Co. V/s Crompton and Brother Ltd. B. Harris V/s Nickerson C. Olley V/s Marlborough Court Ltd. D. Powell V/s Lee List-II I. Standard form of contract II. Intention to create legal relations III. Acceptance must be communicated by the acceptor IV. Invitation to offer Choose the correct answer from the options given below:

1. (a)A-III, B-I, C-IV, D-II
2. (b)A-II, B-IV, C-I, D-III✓
3. (c)A-IV, B-I, C-II, D-III
4. (d)A-I, B-IV, C-III, D-II

Arrange the following statutory provisions on first comes basis as per the Indian Contract Act, 1872: A. Agreement void for uncertainty B. Discharge of surety by release or discharge of principal debtor C. Release of one co-surety does not discharge others. D. Co-sureties liable to contribute equally E. Rights of surety on payment or performance Choose the correct answer from the options given below:

1. (a)A, C, D, B, E
2. (b)A, B, C, E, D✓
3. (c)A, C, E, D, B
4. (d)C, A, D, B, E

Match the following

I -II

A. Fisher v. Bell

1. Privity of contract

B. Harvey v. Facey

2. Minor contract is void

C. Mohiri Bibi v. Dharodas Ghosh

3. Invitation to treat

D. Dunlop Tyre v. Selfridge and Co

4. Quotation of prices

Code

1. (a)3 4 2 1✓
2. (b)1 2 3 4
3. (c)4 2 1 3
4. (d)1 3 4 2

'I promise to pay Rs. 5000 and to deliver to him my black horse on 1st January next.' This is an illustration for which of the following?

1. (a)A valid promissory note
2. (b)An invalid promissory note✓
3. (c)A valid bill of exchange
4. (d)An invalid bill of exchange

In order to convert a proposal into a promise, the acceptance must be

A. Absolute

B. Unqualified

C. Conditional

D. Random

E. Expressed in some usual and reasonable manner

Choose the correct answer from the options given below

1. (a)A and B only
2. (b)A and C only
3. (c)A, B and E only✓
4. (d)B, C and D only

Given below are two statements: one is labelled as Assertion A and the other is labelled as

Reason R

(Assertion A) (Reason)

Assertion A : Mr X hand over a machine to Y, a common carrier, to deliver without any delay to the mill of Mr. X. Y unreasonably delays the delivery of the machine despite being informed that the mill is locked due to lack of machine. As a consequence Mr. X lose a government contract. He is entitled to receive compensation that includes the average amount of profit which he would have made during the time for which the delivery was delayed but not the loss sustained through the lose of the Government contract

A: 'X' 'Y' 'X' 'Y' , 'X'

Reason R : Compensation for the loss or damage caused by breach of contract is not to be given for any remote and indirect loss or damage sustained due to such breach

In the light of the above statements, choose the most appropriate answer from the options given below

1. (a)Both A and R are true and R is the correct explanation of A✓
2. (b)Both A and R are true but R is NOT the correct explanation of A
3. (c)A is true but R is false A R
4. (d)A is false but R is true A R

Match List I with List II

I II

List I/I List II

A. Soundness of mind I. Sec 14

B. Fraud

C. Free consent III. Sec 11

D. Competency to IV. Sec 17/17 contract

Choose the correct answer from the options given below

1. (a)A-I, B-II, C-III, D-IV
2. (b)A-II, B-IV, C-I, D-III✓
3. (c)A-II, B-III, C-I, D-IV
4. (d)A-II, B-IV, C-III, D-I

What is the effect of acceptance of offer in the context of formation of contract?

1. (a)A contract is created only after an offer is accepted✓
2. (b)A contract is created only after an offer is rejected
3. (c)A contract is not created after an offer is accepted
4. (d)A contract is created only after an offer is revoked

In which of the following case it was held that "an agreement by a minor is void"?

1. (a)Damodara Mudaliar v/s Secretary of State for India
2. (b)Mohori Bibee v/s Dharmodas Ghose✓
3. (c)Dharmodas Ghose v/s Brahmo Dutt
4. (d)Damodardass v/s R. Badrilal

Arrange the following cases related to the Indian Contract Act in chronological order (ascending)

A. State of Madhya Pradesh v. Gobardhan Dass

B. New India Assurance Co. v. Haryana Roadways, Sonipat

C. Chairman-cum-M.D. T.N. Tea Plantation Corp. Ltd. v. M/s. Srinivasa Timbers

D. G.S.R.T.C. v. B. Arunchandra & Co

1. (a)A, B, C, D✓
2. (b)B, C, D, A
3. (c)C, D, B, A
4. (d)D, B, A, C

Arrange the following in the order of their appearance in Section 2 of the Indian Contract Act, 1872

A. Proposal

B. Consideration

C. Agreement

D. Promise

E. Contract

Choose the correct answer from the options given below

1. (a)A, B, D, C, E
2. (b)D, B, A, E, C
3. (c)A, D, B, C, E✓
4. (d)B, D, A, E, C

Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R

Assertion A: Every company having net worth of rupees five hundred crores or more or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee (CSRC)

Reason R: The CSR Committee monitors CSR policy of the company. In the light of the above statements, choose the most appropriate answer from the options given below

1. (a)Both A and R are correct and R is the correct explantion of A
2. (b)Both A and R are correct but R is NOT the correct explanation of A
3. (c)A is correct but R is not correct
4. (d)A is not correct but R is correct

Match the LIST-I with LIST-II LIST-I (Concept under Indian Contract Act, 1872) LIST-II (Corresponding Sections)

A. Payment by interested person I. Section 69

B. Payment made under mistake or coercion II. Section 72

C. Liability of pay for non-gratuitous acts III. Section 68

D. Supply of necessaries IV. Section 70

Choose the correct answer from the options given below

1. (a)A-II, B-III, C-I, D-IV
2. (b)A-IV, B-I, C-III, D-II
3. (c)A-I, B-II, C-IV, D-III✓
4. (d)A-III, B-IV, C-II, D-I

Match List I with List II LIST I (Name of the case) LIST II (Subject Matter)

A. Lalman Shukla v. Gauri Dutt I. Section 30, Wagering Agreement

B. Carlill v. Carbolic Smoke Ball Co. II. Section 20, Mistakes of Fact

C. Hadley v. Baxendale III. Section 4, Communication when complete

D. Phillips v. Brooks IV. Section 73, Breach of Contract

Choose the correct answer from the options given below

1. (a)A-II, B-III, C-IV, D-I✓
2. (b)A-IV, B-II, C-I, D-III
3. (c)A-III, B-I, C-IV, D-II
4. (d)A-I, B-IV, C-III, D-II

Which one of the following cases distinguish between an offer and invitation to receive offers?

1. (a)Balfour v. Balfour, (1919)
2. (b)Lalman Shukla v. Gauri Datt, (1913)
3. (c)Harvey v. Facey, (1893)✓
4. (d)Carlill v. Carbolic Smoke Ball Co., (1893)

Find correct explanation form following Assertion and Reason form code: Assertion (A) : Agreement by way of wager are void. Reason (R) : Performance of the bargain must depend upon the determination of an uncertain event, in case of wager.

1. (a)Assertion and Reason are right✓
2. (b)Assertion and Reason are wrong
3. (c)Assertion is right, Reason is wrong
4. (d)Assertion is wrong, Reason is right

In Khemchand v. Bertan, (1888) 13 Bom 150, in context, of public policy relating to a contract, it was decided that:

1. (a)Help given or promised to a dancing girl is tainted with immorality
2. (b)Help given or promised to a dancing girl is not tainted with immorality✓
3. (c)Help given or promised to a dancing girl does not constitute valid consideration for a contract
4. (d)Help given or promised to a dancing girl is an offer for a contract

In estimating the loss or damage arising from a breach of contract:

1. (a)The means which existed of remedying the inconvenience caused by nonperformance of the contract must be taken into account✓
2. (b)The means which existed of remedying the convenience caused by performance of the contract must be taken into account
3. (c)The means which existed of remedying the inconvenience caused by nonperformance of the contract must not be taken into account
4. (d)The means which did not exist of remedying the inconvenience caused by non-performance of the contract must be taken into account

The issue in paradine v. Jane, 82 ER 897, was

1. (a)Mistake
2. (b)Fraud
3. (c)Frustration✓
4. (d)Undue influence

Find correct explanation from following assertion and reason from code. Assertion (A): Damages must be reasonable for breach of a contract. Reason (R): Because reasonable damages are agreed upon in a contract.

Codes:

1. (a)Assertion (A) and Reason (R) are right
2. (b)Assertion (A) and Reason (R) wrong
3. (c)Assertion (A) is right, Reason (R) is wrong✓
4. (d)Assertion (A) is wrong, Reason (R) is right

Frustration of contract is provided by which section of the Indian Contract Act?

1. (a)73
2. (b)70
3. (c)2
4. (d)56✓

When consent is given by mistake, agreement will be:

1. (a)Voidable
2. (b)Void✓
3. (c)Illegal
4. (d)Valid

When the parties to the contract agree to substitute the existing contract with new contract, it is called:

1. (a)Alteration in Contract
2. (b)Rescission of Contract
3. (c)Novation of Contract✓
4. (d)All of the above

Where a contract contains a stipulation by way of penalty on breach of contract, the aggrieved party is entitled for compensation:

1. (a)Stipulated amount, if actual loss is proved
2. (b)Stipulated amount, even actual loss is not proved
3. (c)Reasonable amount but not more than stipulated amount✓
4. (d)Reasonable amount, even more than stipulated amount if loss is proved

Void agreement signifies:

1. (a)Illegal agreement
2. (b)Legally unenforceable agreement✓
3. (c)Agreement without contract
4. (d)Agreement without substance

An agreement obtained by coercion is:

1. (a)Void
2. (b)Voidable✓
3. (c)Valid
4. (d)Illegal

An agreement shall be void on account of:

1. (a)Mistake of law
2. (b)Mistake of fact by one party
3. (c)Mistake of fact by both the parties✓
4. (d)Mistake apparent on face of record

A contingent contract:

1. (a)becomes void when the event becomes impossible✓
2. (b)is voidable
3. (c)is void
4. (d)never becomes void

An agreement to do an impossible act is:

1. (a)void✓
2. (b)voidable
3. (c)Valid
4. (d)unenforceable

Section 73 of the Indian Contract Act applies to:

1. (a)for sale of movable property
2. (b)for sale of immovable property
3. (c)both (A) and (B)
4. (d)None of the above✓

A Wagering Contract is void under:

1. (a)Section 28
2. (b)Section 29
3. (c)Section 30✓
4. (d)Section 31

When a contract provides for a specified sum in case of breach:

1. (a)it prescribes the minimum liability
2. (b)it prescribes the maximum limit of liability
3. (c)it prescribes neither the minimum nor the maximum extent of liability
4. (d)None of the above✓

Under Section 74 of the Indian Contract Act, the provision of liquidated damages is that where liquidated damages are provided for breach of contract, the aggrieved party is entitled to receive reasonable compensation not exceeding the stipulated sum from the party who has broken the contract.

An agreement made by mistake is

1. (a)Void✓
2. (b)Voidable
3. (c)Illegal
4. (d)Immoral

Assertion (A): Damages must be related to damage. Reason (R): Damage is damaging and damages are compensating. Codes:

1. (a)(A) and (R) are true and (R) is correct explanation of (A)
2. (b)(A) and (R) are true but (R) is not correct explanation of (A)
3. (c)(A) is true, but (R) is false
4. (d)(A) is false, but (R) is true✓

Assertion (A): Collateral transactions to wagering agreements are valid. Reason (R): Only wagering agreements are declared void under section 30 of the Indian Contract Act. Code:

1. (a)(A) is true, but (R) is false
2. (b)(A) is false, but (R) is true
3. (c)(A) and (R) are true and (R) is not correct explanation of (A)
4. (d)(A) and (R) are true but (R) is correct explanation of (A)✓

Assertion (A): When subject matter of a contract is destroyed, the contract is frustrated. Reason (R): Frustration of a contract frustrates a party to the contract. Codes:

1. (a)Both (A) and (R) are true and (R) is the correct explanation of (A)
2. (b)Both (A) and (R) are true, but (R) is not correct explanation of (A)✓
3. (c)(A) is true, but (R) is false
4. (d)(A) is false, but (R) is true

When a person making a false statement believes the statement to be true and does not intend to mislead to the other party to the contract, it is known as

1. (a)Mistake
2. (b)Fraud
3. (c)Misrepresentation✓
4. (d)Undue influence

A positive assertion of something which is not true, made in a manner not warranted by the information of the person making it, though he believes it to be true.

Any breach of duty which, without an intent to deceive, gains an advantage to the person committing it or anyone claiming under him, by misleading another to his prejudice or to the prejudice of anyone claiming under him.

Causing a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement, however innocently.

Read Assertion (A) and Reason (R) and with help of code given below, point out the correct explanation. Assertion (A): An agreement not enforceable by law is said to be void. Reason (R): Law has no force. Codes:

1. (a)Both (A) and (R) are true and (R) is the correct explanation of (A)
2. (b)Both (A) and (R) are true, but (R) is not correct explanation of (A)
3. (c)(A) is correct but (R) is false✓
4. (d)(A) is false but (R) is correct

Match items in Table-A with items in Table-B, using codes given below: Table-A: A. Ambiguous and uncertain agreements B. Coercion C. Past consideration D. Remoteness of damage Table-B:

Section-15

Section-25(2)

Section-73

Section-29 Codes:

1. (a)A-2, B-3, C-4, D-1
2. (b)A-4, B-1, C-2, D-3✓
3. (c)A-3, B-2, C-1, D-4
4. (d)A-1, B-4, C-3, D-2

Which one of the following provisions of the Indian Contract Act deals with the reciprocal promise to do things legal and also other things illegal?

1. (a)Section 56
2. (b)Section 57✓
3. (c)Section 58
4. (d)Section 17

Section 26 of the Indian Contract Act declares the agreement void on the ground of

1. (a)Absolute restraint only
2. (b)Partial restraint only
3. (c)Both absolute or partial restraint✓
4. (d)None of the above

When consent is given due to mistake, an agreement will be

1. (a)Voidable
2. (b)Legal
3. (c)Illegal
4. (d)Void✓

A contract may be vitiated by:

Fraud

Mistake

Frustration

Undue influence Find correct answer, using codes:

1. (a)Only (i) is correct
2. (b)Only (i) and (ii) are correct
3. (c)Only (i), (ii) and (iii) are correct
4. (d)All are correct✓

Match items in Table A with Items in Table B, using codes given below: Table-A: A. Promise B. Frustration C. Effect of refusal to accept offer of performance D. Agreement in restraint of marriage Table-B:

Section 56

Section 2(D)

Section 26

Section 38 Codes:

1. (a)A-2, B-4, C-1, D-3
2. (b)A-2, B-1, C-4, D-3✓
3. (c)A-1, B-2, C-4, D-3
4. (d)A-1, B-2, C-3, D-4

In Indian Contract Act, the term voidable contract has been defined under:

1. (a)Section 2 (e)
2. (b)Section 2 (h)
3. (c)Section 2 (i)✓
4. (d)Section 2 (g)

An agreement of trade combination to regulate legal trade in organized way is

1. (a)Void
2. (b)Voidable
3. (c)Legal✓
4. (d)Illegal

Arrange the following concepts in which sequence they appeared, using the codes given below:

Damage

Breach of terms of agreement of partnership

Damaged

Agreement to share profits from business of firm Codes:

1. (a)1, 2, 4, 3
2. (b)4, 2, 1, 3✓
3. (c)2, 4, 1, 3
4. (d)3, 1, 2, 4

Where, a law promulgated after the contract is made, makes the performance of the agreement impossible, the agreement becomes

1. (a)Voidable
2. (b)Valid
3. (c)Void✓
4. (d)Absolutely binding

Match List-I with List-II and select the correct answer using the codes given below: List-I A. Damages arising in the usual course of things B. Compensation for mental anguish C. Measure of damages D. Compensation for breach of contract where penalty is stipulated for List-II

Ghaziabad Dev. Authority v. Union of India

Hadley v. Baxendale

M/s Ganga Maruthi v. Nagaraj

Jamal v. Moolla Dewood Code:

1. (a)A-2, B-1, C-4, D-3✓
2. (b)A-1, B-2, C-4, D-3
3. (c)A-2, B-1, C-3, D-4
4. (d)A-4, B-3, C-1, D-2

Match List-I with List-II and select the correct answer using the codes given below: List-I (Heads of Public Policy) A. Trading with enemy B. Trafficking in public offices C. Interference with administration of justice D. Marriage brokage contracts List-II (Case-Law)

Girdhari Singh v. Neeladhar Singh

Espostiv v. Bowden

Shivsaran Lal v. Keshav Prasad

Nand Kishor v. Kunj Bihari Lal Code:

1. (a)A-1, B-4, C-2, D-3
2. (b)A-4, B-1, C-2, D-3✓
3. (c)A-4, B-1, C-3, D-2
4. (d)A-2, B-3, C-1, D-4

Read Assertion (A) and Reason (R) are answer using codes given below: Assertion (A): Compensation is recoverable for any loss or damage arising unnaturally in the unusual course of things from breach of contract, or which the parties did not know at the time of the contract as likely to result from the breach. Reason (R): Because Section 73 of the Indian Contract Act stipulates so. Codes:

1. (a)Both (A) and (R) are right and (R) is correct reason for (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is right, but (R) is wrong
4. (d)(R) is right, but (A) is wrong

Doctrine of frustration was laid down for the first time in:

1. (a)Krell v. Henry
2. (b)Taylor v. Caldwell✓
3. (c)Paradine v. Jane
4. (d)Cricklewood Property and Investment Trust Ltd. v. Leighton's Investment Trust Ltd.

Which of the following cases is about performance of contract?

1. (a)Maruti Udyog Ltd. v. Susheel Kumar Gobgetra
2. (b)Great Northern Railway Co. v. Harrison✓
3. (c)Joyce v. Swanri
4. (d)Behn v. Burness

A relationship involving trust and confidence

In a relationship, one party is a person in mental distress Code:

1. (a)Only 1 and 2
2. (b)Only 2 and 3
3. (c)Only 3 and 4✓
4. (d)Only 1 and 4

Which of the following statements are wrong? Answer using the codes given below:

Fraud renders a contract void

Misrepresentation renders a contract voidable

Misrepresentation is more or less an intentional wrong, whereas fraud may be quite innocent

Damages for loss caused by innocent misrepresentation are assessed on the same principles as in the case of a deliberate fraud Code:

1. (a)1 and 3 only✓
2. (b)2 and 4 only
3. (c)1 and 4 only
4. (d)1 and 2 only

Match List-I with List-II and select the correct answer using the codes given below: List-I (Consequences of ultra vires transaction) A. Rights of a member of company to get against ultra vires transaction B. Personal liability of directors C. Breach of warranty of authority to induce a third party to enter into ultra vires transaction D. Ultra vires acquired property List-II (Judgement)

Jehangir R. Modi v. Shamji injunction Ladha

Attorney General v. Great Eastern

Coltman v. Coltman

Weeks v. Propert Code:

1. (a)A-2, B-1, C-4, D-3✓
2. (b)A-1, B-2, C-4, D-3
3. (c)A-2, B-1, C-3, D-4
4. (d)A-4, B-3, C-1, D-2

Where the plaintiff suffers no loss, the court may still award him nominal damages in recognition of his right. But this is in the discretion of the court

In ordinary cases damages for mental pain and suffering caused by the breach of contract are not allowed Code:

1. (a)Only (1) and (2) are wrong
2. (b)Only (2) and (4) are wrong
3. (c)Only (1) is wrong✓
4. (d)Only (4) is wrong

Match List-I with List-II and select the correct answer using the codes given below: List-I (Mistake as to subject matter of contract) A. Mistake as to non-existent subject-matter B. Mistake as to title or rights C. Different subject-matters in mind D. Mistake as to substance, nature or quality or subject matter List-II (Judgements)

Bell v. Lever Bros. Ltd. (1931) UKHL

Raffles v. Wichelhaus (1864)

Gustavus Couturier v. Robert Hastie (1956) UKHL

Sheikh Bros. Ltd. v. Ochsner (1957) Code:

1. (a)A-1, B-3, C-2, D-4
2. (b)A-1, B-3, C-4, D-2
3. (c)A-3, B-1, C-2, D-4✓
4. (d)A-4, B-2, C-1, D-3

Match List-I with List-II and select the correct answer using codes given below: List-I (Law relating to directors) A. Appointment of Additional Directors B. Removal of Directors by Shareholders. C. Special Statutory Protection for Directors against liability D. Exclusion of Liability not allowed to Directors List-II (Relevant Sections under Companies Act)

S. 284

S. 201

S.260

S. 633 Code:

1. (a)A-1, B-3, C-4, D-2
2. (b)A-3, B-1, C-4, D-2✓
3. (c)A-3, B-1, C-2, D-4
4. (d)A-4, B-2, C-1, D-3

In which one of the following cases doctrine of frustration was laid down?

1. (a)BOI Finance Ltd. v. Custodian
2. (b)Orissa Textile Mills ltd. v. Ganesh Das
3. (c)Sachidananda patnaik v. G.P. & Co.
4. (d)Taylor v. Coldwell✓

Read Assertion (A) and Reason (R) and answer using the code given below: Assertion (A): Compensation is recoverable for any loss or damage of which the parties knew at the time of the contract and unlikely to result from the breach of the contract. Reason (R): Because above rule is laid down in Hadley v. Baxendale case. Codes:

1. (a)Both (A) and (R) are correct and (R) is correct reason for (A)✓
2. (b)Both (A) and (R) are wrong
3. (c)(A) is right, but (R) is wrong
4. (d)(R) is right, but (A) is wrong

Read Assertion (A) and Reason (R) and answer by using code given below: Assertion (A): An agreement would be void if both the parties to the agreement were under a mistake as to a matter of fact no essential to the agreements. Reason (R): Because Section 20 of the Indian Contract Act so provides. Code:

1. (a)(A) is correct, but (R) is incorrect
2. (b)(A) is correct, but (R) is incorrect
3. (c)Both (A) and (R) are correct
4. (d)Both (A) and (R) are incorrect✓

In which of the following cases law of frustration was applied? Answer using code given below:

Paradine v. Jane

Taylor v. Caldwell

Krell v. Henry

Criklewood property and investment Trust Ltd. v. Leighton's investment Trust Ltd. Code:

1. (a)1 only
2. (b)1 and 2 only
3. (c)1, 2 and 3 only
4. (d)1, 2, 3 and 4✓

Which one of the following cases enshrine the present position of the doctrine of policy in India?

1. (a)Ramchand Hirachand v. Askar Nawaz Jung
2. (b)Gherulal Parekh v. Mahadeodas✓
3. (c)Munlammal v. Raja
4. (d)Geeta Satish Gokarna v. Satish Shankarrao Gokarna

The defence of 'non est factum' is available to the contracting party who has committed mistake as to the:

1. (a)Identity of the other contracting party
2. (b)Natural of contract✓
3. (c)Quality of the subject matter of the contract
4. (d)Quality of the promise made by the other party

Special damages will be awarded in case of a breach of contact:

1. (a)Only when the contracting parties express the same specifically as the terms of the contract
2. (b)Always in the special circumstances leading to the formation of the contract
3. (c)Only when the court of law thinks fit in the special circumstances of the case
4. (d)Only when the special circumstance causing loss of profit resulting from the breach of contract were brought to the notice of the party committing breach at the time of formation of the contract✓

A master asks his servant to sell his cycle to him at less than the market price. This contract can be avoided by the servants on the ground of:

1. (a)Coercion
2. (b)Fraud
3. (c)Undue influence✓
4. (d)Misrepresentation

'Non est factum' means, a document executed

1. (a)Under undue influence
2. (b)In ignorance✓
3. (c)Outside India
4. (d)Under undue influence

Hadley v. Baxendale is a leading case on:

1. (a)Minor's agreement
2. (b)Anticipatory breach
3. (c)Breach of implied term
4. (d)Remoteness of damages✓

Frustration of contract implies:

1. (a)Legal impediment to materialize the contract
2. (b)Commercial hardship
3. (c)Financial constraint to materialise the contract
4. (d)Physical impossibility due to disappearance of the subject matter of contract or object has failed to materialise✓

A party who suffers loss as a result of a breach of contract can in the usual course claim:

1. (a)Ordinary damages✓
2. (b)Special damages
3. (c)Exemplary damages
4. (d)Penal damages

Frustration of a contract occurs in two conditions. Firstly, where the contract has become physically impossible and secondly, where the object has failed. The above was laid down in the case of:

1. (a)Krell vs Henry✓
2. (b)Paradine vs Jane
3. (c)Taylor vs Caldwell
4. (d)Komal Rani vs Chandram

When performance is physically possible but the object of the parties cannot be fulfilled. Taylor v Caldwell (1863) — the court held that when the subject matter of the contract is destroyed, the contract is discharged. Paradine v Jane (1647) — the first rule in English law was that events occurring after the formation of a contract cannot excuse a party from performance.

Which of the following are correct? A. The Doctrine of Privity of Consideration is applicable in India B. The Doctrine of Privity of Consideration is not applicable in India C. The Rule of Privity of Contract is applicable in India D. The Rule of Privity of Contract is not applicable in India Choose the correct answer from the options given below:

1. (a)A and C only
2. (b)B and D only
3. (c)B and C only
4. (d)C only

Given below are two statements: Statement I: A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable. Statement II: An agreement in restraint of trade is voidable. In light of the above statements, choose the correct answer from the options given below:

1. (a)Both Statement I and Statement II are true
2. (b)Both Statement I and Statement II are false
3. (c)Statement I is true but Statement II is false✓
4. (d)Statement I is false but Statement II is true

In estimating the loss or damage arising from a breach of contract, the means which existed of remedying the inconvenience caused by the non-performance of the contract:

1. (a)Can be taken into account
2. (b)Cannot be taken into account
3. (c)Must be taken into account✓
4. (d)Must never be taken into account

Which of the following are correct? Fraud means and includes: A. The suggestion as a fact, of that which is not true, by one who does not believe it to be true. B. The passive concealment of a fact. C. A promise made without any intention of performing it. D. Any other act fitted to deceive. E. Any such thing which the law declares as misrepresentation. Choose the most appropriate answer from the options given below:

1. (a)A, B, C and D only
2. (b)A, B and E only
3. (c)C, D and E only
4. (d)A, C and D only✓

In which of the following cases the duties are not specifically enforced in respect of the act done?

(1) The liability of a borrower to repay a debt barred by statue of limitation

(2) The liability of a borrower to repay the money borrowed by him

(3) To refrain the wrong doer from publication when a libel has already been published

(4) To refrain the wrong doer to continue the commission of a nuisance

Choose the correct answer from the options given below

1. (a)(1) and (2) only
2. (b)(1) and (3) only✓
3. (c)(2) and (3) only
4. (d)(2) and (4) only

Arrange the following provisions related to 'void agreement in chronological order, as provided under the Indian Contract Act

(A) Agreement in restraint of marriage

(B) Agreement in restraint of legal proceedings

(C) Agreement in restraint of trade

(D) Agreement without consideration

(E) Agreement which is ambiguous and uncertain

Choose the correct answer from the options given below

1. (a)(D), (A), (C), (B), (E)✓
2. (b)(C), (A), (B), (E), (D)
3. (c)(B), (A), (D), (C), (E)
4. (d)(A), (C), (E), (D), (B)

Which of the following are consequences of Breach of Contract?

(A) Damages in ordinary course

(B) Remote damages and ordinary damages

(C) If stipulation by way of penalty is given in contract, then penalty is a consequence

(D) In quantifying damages, the inconvenience of non performance has to be considered

Choose the correct answer from the options given below

1. (a)(A), (B), (C) Only
2. (b)(A), (C), (D) Only✓
3. (c)(D), (B), (C) Only
4. (d)(B), (C), (D) Only

What is the meaning of the following maxim?

"Ex turpi causa non oritur actio"

1. (a)From an immoral cause no action arises✓
2. (b)From an immoral cause an action arises
3. (c)From a moral cause an action arises
4. (d)From a moral cause no action arises

Arrange the following in the order in which they appear in the Indian Contract Act

A. Agreement by way of wager

B. Agreement in restraint of legal proceedings

C. Agreement in restraint of trade

D. Agreement in restraint of marriage

1. (a)A, B, C, D
2. (b)B, C, D, A
3. (c)D, C, B, A✓
4. (d)C, D, A, B

The legal maxim "In Pari Delicto" refers to

1. (a)A mad man has no will
2. (b)The crime carries the persons
3. (c)In equal fault✓
4. (d)An act done by me against my will

As per the Section 30 of the Indian Contract Act, 1872, which of the following is not an essential elements of a contingent contract?

1. (a)There must be a valid contract to do or not to do something
2. (b)Such act or abstinence must depend on the happening or non-happening of the uncertain event
3. (c)An Uncertain event non-necessarily collateral to the contract✓
4. (d)The event should not be at the discretion of promisor

No customer in a thousand ever read the conditions. If he had stopped to do, he would have missed the train or the boat. This observation was made by

1. (a)Anson
2. (b)Donaldson
3. (c)Lord Denning✓
4. (d)Pearson

A wife has an implied authority of the husband to buy articles of household necessity

1. (a)if the wife is living with her husband in a domestic establishment of their own✓
2. (b)if the wife is living separately
3. (c)if the wife is living with her husband not in a domestic establishment
4. (d)if the wife is provided a reasonable allowance by the husband for the purchase of household needs

In which of the following situations, the Quasi Contract Doctrine is not applied?

1. (a)In disputes regarding payment for goods delivered or services rendered with a formal contract✓
2. (b)Where no contract but fictional agreement arise
3. (c)Where there is an unjust enrichment without a formal contract
4. (d)Where there is a liability to pay gratuitous act

The term "Contra Prolerentem" means

1. (a)Contradictory contract
2. (b)Standard form contract are to be interpreted legally
3. (c)Limited construction
4. (d)Ambiguity is to be resolved against the party who inserted limiting term✓

Which of the following statements are correct in the context of standard form contracts?

A. Notice should not be contemporaneous with the consent

B. There should be a reasonable notice of the contractual terms

C. There should be no misrepresentation

D. The parties are not bound if the terms are contained in a contractual document

E. The contract with standard terms may be drafted by one party and on the same terms contracts may be made with numerous persons

1. (a)B, C, E only✓
2. (b)A, B, C only
3. (c)B, C, D only
4. (d)A, D, C only

In the context of Standard Form Contracts, which Rule will apply if there is any doubt as to the meaning and scope of excluding or limiting terms and to resolve the ambiguity against the party who has inserted it?

1. (a)Purposive Interpretation Rule
2. (b)Removal Simpliciter Rule
3. (c)Contra Proferentem Rule✓
4. (d)Escalation Clauses Rule

An undisclosed principal cannot intervene when he knows that the other party would have dealt with him

An undisclosed principal can intervene when he knows that the other party would not have dealt with him

1. (a)1 and 2 are correct
2. (b)2 and 3 are correct✓
3. (c)3 and 4 are correct
4. (d)4 and 1 are correct

Match items from Table-A with item in Table-B, using codes given below: Table-A: A. Lakshmi Ratan Cotton Mills v. J.K. Jute Mills Co., AIR 1957 All 311 B. Automatic Self-cleansing Filter Syndicate Co.Ltd. v. Cuningham, (1906) 2 Ch. 34 C. G. Ramesh v. ROC, (2007) 135 Comp Cas 655 D. City Equitable Fire Insurance Company, Re, (1924) AH E Rep 485 Table-B:

Director's duty of care, diligence and skill related to Directors' duty

Statutory protection to Directors against liability

Powers of Directors

Scope of authority of Directors Codes:

1. (a)A-4, B-3, C-2, D-1✓
2. (b)A-3, B-2, C-1, D-4
3. (c)A-2, B-1, C-4, D-3
4. (d)A-1, B-4, C-3, D-2

Match List I with List II (Indian Contract Act, 1872): List-I (A) Section 162 of the Indian Contract Act, 1872 (B) Section 178 of the Indian Contract Act, 1872 (C) Section 214 of the Indian Contract Act, 1872 (D) Section 150 of the Indian Contract Act, 1872 List-II (I) Pledge by Mercantile Agent (II) Bailor's duty to disclose faults in goods bailed (III) Termination of gratuitous bailment by death (IV) Agent's duty to communicate with principal Choose the correct answer from the options given below:

1. (a)(A)-(I), (B)-(IV), (C)-(III), (D)-(II)
2. (b)(A)-(II), (B)-(I), (C)-(IV), (D)-(III)
3. (c)(A)-(IV), (B)-(II), (C)-(I), (D)-(III)
4. (d)(A)-(III), (B)-(I), (C)-(IV), (D)-(II)✓

In a contract of Guarantee under the Indian Contract Act, 1872 there are:

1. (a)Two parties and two contracts
2. (b)Three parties and three contracts✓
3. (c)Three parties and one contract
4. (d)Two parties and one contract

Between the creditor and the debtor,

Between the creditor and the surety,

Between the debtor and the surety.

Given below are two statements: One is labelled Assertion (A) and the other is labelled as Reason (R): Assertion A: Under the Companies Act of 2013, Central Government is authorized to implement a facility to file documents in electronic form. Reason R: Central Government is authorized to make rules to implement this facility and section 398, 401 and 402 have been incorporated in the Act of 2013. In the light of the above statements, choose the correct answer from the options given below:

1. (a)Both A and R are true and R is the correct explanation of A✓
2. (b)Both A and R are true and R is not the correct explanation of A
3. (c)A is true but R is false
4. (d)A is false but R is true

Given below are two statements: Statement I: A becomes surety to C for B's conduct as a manager in C's bank. Afterwards, B and C contract, without A's consent that B's salary shall be raised and that he shall become liable for one-fourth of the losses on overdrafts. B allows a customer to overdraw and the bank loses a sum of money. Statement II: A is liable to make good the loss as he is a surety to C for B's conduct. In light of the above statements, choose the most appropriate answer from the options given below:

1. (a)Both Statement I and Statement II are correct
2. (b)Both Statement I and Statement II are incorrect
3. (c)Statement I is correct but Statement II is incorrect✓
4. (d)Statement I is incorrect but Statement II is correct

The sub-Agent is responsible for his acts to the Agent, but not to the Principal, except in case of:

1. (a)Fraud
2. (b)Fraud or misrepresentation
3. (c)Fraud or wilful wrong✓
4. (d)Principal himself undertaking the responsibility

Which of the following are correct in case of a contract of bailment? A. The person who delivers the goods is called the bailee. B. If the bailee does any act which is inconsistent with the conditions of bailment, the contract is void. C. A gratuitous bailment is terminated by death either of the bailor or of the bailee. D. The bailee is bound to take care of the goods bailed. E. Bailee has no general lien. Choose the correct answer from the options given below:

1. (a)A, B and C only
2. (b)D and E only
3. (c)B and C only
4. (d)C and D only✓

Which one of the following is NOT one of the modes of termination of agency?

1. (a)Insolvency of principal
2. (b)Principal or agent's death
3. (c)General Lien✓
4. (d)Revocation

The 'bailment of the goods,' as security for payment of a debt or performance of a promise, is called

1. (a)Indemnity
2. (b)Guarantee
3. (c)Mortgage
4. (d)Pledge✓

"Consideration is not necessary for creation of Agency" This is provided in

1. (a)Section 185 of the Indian Contract Act, 1872✓
2. (b)Section 4 of the Partnership Act, 1932
3. (c)Section 4 of the Indian Agency Act, 1950
4. (d)Section 2 of the Companies Act, 2013

What are the duties of a bailee under the Indian Contract Act?

A. Duty to take reasonable care of the goods bailed

B. Duty not to make unauthorized use of the goods

C. Duty not to mix bailor's goods with his own goods

D. Duty to return the goods on fulfilment of the purpose

E. Duty not to deliver to the bailor increase or profit on the goods bailed

Choose the correct answer from the options given below

1. (a)B, C, D, E only
2. (b)C, D, E, A only
3. (c)D, E, B, A only
4. (d)A, B, C, D only✓

Arrange the following concepts as per their order of appearance in the Indian Contract Act, 1872

A. Continuing guarantee

B. Care to be taken by bailee

C. Compensation for loss or damage caused by breach of contract

D. Claims for necessaries supplied to person incapable of contracting

Choose the correct answer from the options given below

1. (a)D, B, C, A
2. (b)D, C, A, B✓
3. (c)C, D, B, A
4. (d)B, A, C, D

Match List I with List II LIST I (Concept) LIST II (Provisions)

A. ‘Agent’ and ‘Principal’ I. Section 148 of the Indian Contract Act, 1872

B. ‘Bailment’ II. Section 124 of the Indian Contract Act, 1872

C. Contract of Indemnity III. Section 126 of the Indian Contract Act, 1872

D. Contract of Guarantee IV. Section 182 of the Indian Contract Act, 1872

Choose the correct answer from the options given below

1. (a)A-IV, B-I, C-II, D-III✓
2. (b)A-II, B-I, C-IV, D-III
3. (c)A-III, B-IV, C-II, D-I
4. (d)A-I, B-III, C-IV, D-II

"Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell." Read above statement and find correct answer, using codes given below:

1. (a)Contract of sale is conditional
2. (b)Contract of agreement to sell is conditional✓
3. (c)There is no difference between sale and agreement to sell, as both are contracts
4. (d)Sale is a contract, agreement to sell is not a contract

Find correct answer, using codes given below:

Bulk shall correspond with sample, is an implied condition.

Buyer shall have a reasonable opportunity of comparing bulk with sample, is an implied condition.

Goods should be free from any defect rendering them unmerchantable, is an implied condition.

There is an implied condition that the buyer shall have and enjoy possession of the goods. Codes:

1. (a)1 only is correct
2. (b)1 and 2 only are correct
3. (c)1, 2 and 3 only are correct✓
4. (d)All of above are correct

Which are essentials of a contract of sale of goods? Answer using codes given below:

Offer

Acceptance of offer

Exchange of goods for money

Transfer of property in goods from seller to buyer Codes:

1. (a)only i and ii
2. (b)only iii and iv
3. (c)Only ii and iii
4. (d)i, ii, iii and iv✓

Read Assertion (A) and Reason (R) and answer using the codes below: Assertion (A): Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects to pay for the goods according to the terms of the contract, the buyer may sue the seller for the price of the goods. Reason (R): The seller is entitled to get the contractual price. Codes:

1. (a)Both (A) and (R) are correct, and (R) is correct reason for (A)
2. (b)Both (A) and (R) are wrong
3. (c)(A) is wrong, but (R) is right✓
4. (d)(R) is wrong, but (A) is right

Match List-I with List-II and select the correct answer using the codes given below: List-I A. Intention of parties to pass property in goods B. Ascertainment of intention to pass property in goods C. Property of goods D. Specific goods in deliverable state List-II

Ghasiram v. State

Badriprasad v. State of Madhya Pradesh

United Breweries Ltd. v. State of Andhra Pradesh

Usha Beltron Ltd v. State of Punjab Code:

1. (a)A-2, B-4, C-1, D-3
2. (b)A-3, B-1, C-2, D-4
3. (c)A-1, B-3, C-4, D-2
4. (d)A-3, B-1, C-4, D-2✓

Intention to pass property in goods — United Breweries Ltd. v. Andhra Pradesh

Ascertainment of intention to pass property — Ghasiram v. State

Property of goods — Usha Beltron Ltd v. State of Punjab

Specific goods in deliverable state — Badriprasad v. Madhya Pradesh State

Which one statement is correct from the following statements?

1. (a)If the contract is inconsistent with the public documents, the person contracting will not be prejudiced by irregularities that may be set the outdoor working of the company
2. (b)If the contract is consistent with the public documents, the person contracting will not be prejudiced by irregularities that may be set the indoor working of the company✓
3. (c)The doctrine of indoor management seeks to protect the company against the outside
4. (d)The doctrine of ultra vires seeks to protect the outsider against internal irregularities of the company

Which are essentials of sale of goods? Answer using codes given below:

Contractual capacity

Bilateral contract

Profit for seller

Mutual and free consent of parties to the contract of sale of goods Codes:

1. (a)1, 2, 3
2. (b)1, 2, 3✓
3. (c)2, 3, 4
4. (d)1, 3, 4

Match List-I with List-II and select the correct answer using the code given below: List-I A. Installment Supply Ltd. v. STO B. Gardiner v. Gray C. Peter Darlington Partners Ltd. v. Gesho Co. Ltd. D. Farquharson Bros v. King and Co. List-II

Conditions applied by trade usage

Nemo dat quod non habet

Sale by description

Difference between sale and agreement to sale Code:

1. (a)A-3, B-4, C-2, D-1
2. (b)A-3, B-4, C-1, D-2
3. (c)A-4, B-3, C-1, D-2✓
4. (d)A-4, B-3, C-2, D-1

Match List-I with List-II and select the correct answer using codes given below: List-I A. Goods in sale of goods B. Consideration for a sale of goods C. Sale and agreement to sale D. Difference between contract of sale and contract of agency List-II

Bhopal Sugar Industries Ltd. v. STO

Instalment Supply Ltd. v. STO

R.D. Goyal v. Reliance Industries Ltd.

Aldridge v. Johnson Code:

1. (a)A-3, B-4, C-2, D-1✓
2. (b)A-4, B-3, C-2, D-1
3. (c)A-3, B-4, C-1, D-2
4. (d)A-2, B-1, C-4, D-3

Match list-I with List-II and select the correct answer using the codes given below: List-I A. Buyer purchasing on the basis of description B. Packing as description C. Reliance on description to be in contemplation of parties. D. Correspondence with description. List-II

Arcos v. Ronnason & Son

Varley v. Whipp

Moore and Co. v. Landauer & Co.

Leaf v. International Gallries Code:

1. (a)A-3, B-2, C-4, D-1
2. (b)A-2, B-3, C-4, D-1✓
3. (c)A-2, B-3, C-1, D-4
4. (d)A-4, B-1, C-3, D-2

Which of the following statement is correct according to section 2(9) of the Sale of Goods Act? "Mercantile Agent" means a mercantile agent

1. (a)having in the usual course of business as such seller authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to distribute money for security of goods
2. (b)having in the customary business as such agent power either to sell goods, or to mortgage goods for purpose of sale
3. (c)having in the customary course of business as such agent authority to sell goods✓
4. (d)having in the normal course of business as such agent authority to confine goods or to raise goods for purpose of the security of money

Which of the following statements are correct. Answer using the codes given below:

Ascertainment of goods for sale is done by buyer

Appropriation of goods for sale is done by seller

Distinction between ascertainment of goods and appropriation of goods that former involves "the element of common intention between buyer and seller", whereas latter can be a unilateral act by buyer

Property in goods does not pass to buyer till appropriation Codes:

1. (a)only 1, 3 and 4 are correct
2. (b)only 2 is correct
3. (c)only 4 is correct✓
4. (d)only 3 is correct

Read Assertion (A) and Reason (R) and answer using the codes given below: Assertion (A): "Goods" means every kind of movable property including actionable claims and money and excludes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. Reason (R): Above principle is laid down in Section 2(7) of the Sale of Goods Act. Code:

1. (a)Both (A) and (R) are right
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is wrong but (R) is right
4. (d)(A) is right but (R) is wrong

Which of the following is incorrect regarding meaning of 'Merchantable quality of goods'?

1. (a)the goods are free from patent defects✓
2. (b)the goods are free from latent defects
3. (c)the goods can be used for the purpose for which they are bought
4. (d)that the goods are marketable at their full value

Which one of the following cannot be treated as delivery under the Sale of Goods Act, 1930?

1. (a)Doing anything which has the effect of putting goods in possession of legal representatives of seller✓
2. (b)Doing anything which has the effect of putting goods in possession of any person authorised by the buyer
3. (c)Doing anything which has the effect of putting goods in possession of the buyer
4. (d)Doing anything which the parties agree to be treated as delivery

Under Section 5 of the Sale of Goods Act, 1930, a contract for sale of goods can be made: A. By writing and must be registered B. By word of mouth C. By partly in writing and partly word of mouth D. By writing or partly in writing and partly by word of mouth Choose the correct answer from the options given below:

1. (a)A and C only
2. (b)A and D only
3. (c)A and B only
4. (d)B and D only✓

In case of unascertained goods, the property in goods passes:

1. (a)When goods are ascertained✓
2. (b)When the parties intend the property in goods to pass
3. (c)As soon as the contract of sale is signed
4. (d)After the payment of goods is received by the seller

A car was sold on 'as is' basis and without any warranty or guarantee whatever. After 5 days of the contract, the engine of the car blew up. Discuss the liability of the seller.

1. (a)He is liable for the damages due to the doctrine of fundamental breach of standard form of contract✓
2. (b)The seller is not liable because the car was sold on 'as is' basis and without any warranty or guarantee
3. (c)The buyer should take care if he buys a second-hand car
4. (d)Under standard form contract, in this case, contributory negligence is applicable

In which of the following cases, it was held that a 'contract to take and supply photographs' is a 'contract of sale of goods'?

1. (a)Love V/s Norman Wright (Builders) Ltd. (1944)
2. (b)Newman V/s Lipman (1951)✓
3. (c)Lee V/s Griffin (1861)
4. (d)Robinson V/s Graves (1935)

In the Sale of Goods Act, 1930, "fault" means:

1. (a)Wrongful gain or wrongful loss
2. (b)Wrongful act
3. (c)Wrongful act or default✓
4. (d)Negligent and wrongful act

Match List-I with List-II: List-I A. Specific goods in a deliverable state B. Auction sale C. Remedy for breach of warranty D. Sale by one joint owners List-II I. Section 64, Sale of Goods Act, 1930 II. Section 28, Sale of Goods Act, 1930 III. Section 20, Sale of Goods Act, 1930 IV. Section 59, Sale of Goods Act, 1930

1. (a)A-II, B-III, C-I, D-IV
2. (b)A-IV, B-II, C-III, D-I
3. (c)A-I, B-III, C-II, D-IV
4. (d)A-III, B-I, C-IV, D-II✓

"Implied conditions as to quality or fitness of goods" is given under which section of the Sale of Goods Act, 1930 ?

1. (a)Section 14
2. (b)Section 15
3. (c)Section 16✓
4. (d)Section 17

Which of the following right is not available under the Sale of Goods Act, 1930 to the Unpaid Seller notwithstanding that the property in the goods may have passed to the buyer?

1. (a)A lien on the goods for the price while he is in possession of them
2. (b)In case of the insolvency of the buyer, a right of stopping the goods in transit after he has parted with the possession of them
3. (c)A right of re-sale as limited by the Act
4. (d)A right of withholding delivery✓

'A' purchase a horse from 'B'. 'A' needs the horse for riding but he does not mention this to 'B'. The horse is not suitable for riding but is suitable only for being driven in a carriage. 'A' can

A. 'A' can return the horse under implied conditions as to quality or purpose under Section 16 of the sale of Goods Act

B. 'A' can neither reject the horse nor can he claim any compensation from B

C. The situation is covered under the rule contained in the maxim caveat emptor

D. The situation is covered under exception mentioned under 16(1) dealing with implied conditions of the fitness of the goods for any particular purpose

Choose the correct answer from the options given below

1. (a)A and B only
2. (b)B and C only✓
3. (c)A and C only
4. (d)A and D only

Partnership is based on

1. (a)Mutual trust
2. (b)Mutual benefit
3. (c)Mutual interest
4. (d)Mutual agency✓

Which statements are correct?

Partner has a duty of good faith

Partner has duty not to compete

Partner has duty of due diligence

Partner has duty to indemnify for fraud Codes:

1. (a)Only 1 is correct
2. (b)Only 1 and 2 are correct
3. (c)Only 1, 2 and 3 are correct
4. (d)1, 2, 3 and 4 are correct✓

Read the following passage and match the column. No suit to enforce a right arising from a contract shall be initiated in any court by any person suing as a partner in a non-registered firm. Registration of firms is not compulsory. There is no penalty for non registration. An unregistered firm cannot sue any third person for the enforcement of any right arising from contract. Column-P: A. Registration B. Non Registration C. Partner of a registered firm D. Partner of a non-registered firm Column-Q:

No penalty

Optional

Unenforceability of his rights

Can sue Codes:

1. (a)A-1, B-2, C-3, D-4
2. (b)A-2, B-1, C-4, D-3✓
3. (c)A-2, B-1, C-3, D-4
4. (d)A-1, B-3, C-2, D-4

Which statements are correct?

Partners have right to profit

Partners have right to attend general meeting

Partners have right to interest

Partners have right to appoint proxy Codes:

1. (a)1 and 2 are correct
2. (b)2 and 3 are correct
3. (c)3 and 4 are correct
4. (d)1 and 3 are correct✓

Essential feature of a partnership is

Agreement

Object to carry on a business

To share profits

Business is to be carried by all or any of them acting for all Codes:

1. (a)Only 1 is correct
2. (b)Only 1 and 2 are correct
3. (c)Only 1, 2 and 3 are correct
4. (d)All of above are correct✓

Registration of a firm is

1. (a)Mandatory
2. (b)Not compulsory✓
3. (c)Desirable
4. (d)Of no use

Match an item in List-I with an item in List-II using codes given below: List-I (In case of partnership): A. Duty to account for personal profits B. Duty not to compete C. Duty of good faith D. Right to take part in business List-II (Case):

Pulin v. Mahendra, (1921) 34 Cal LJ 405

Suresh Kumar v. Amrit Kumar, AIR 1982 Del 131

Gardner v. Mc Cutcheon, 4 Beav. 534 (1842)

Helmore v. Smith, (1886) 35 Ch D. 436 Codes:

1. (a)A-4, B-2, C-1, D-3
2. (b)A-3, B-1, C-2, D-4
3. (c)A-1, B-3, C-4, D-2
4. (d)A-3, B-1, C-4, D-2✓

Match items in table A with items in table B, using codes given below: Table A: A. Essentials of partnership B. Partnership at will C. Effect of non-registration of firm D. Compulsory dissolution of firm Table B:

Section 41

Section 4

Section 7

Section 69 Code:

1. (a)A-1, B-2, C-4, D-3
2. (b)A-2, B-3, C-4, D-1✓
3. (c)A-3, B-4, C-1, D-2
4. (d)A-1, B-2, C-3, D-4

Partnership is

1. (a)Trust
2. (b)Company
3. (c)Mutual agency✓
4. (d)Mutual fund

Assertion (A): When something of valuable nature is acquired by a partner in breach of his duty in good faith, it is taken to be acquired for the benefit of all the partners and has to be accounted for to the firm. Reason (R): Partnership is a trust. Codes:

1. (a)Both (A) and (R) are true and (R) is the correct explanation of (A)
2. (b)Both (A) and (R) are true (R) is not the correct explanation of (A)
3. (c)(A) is true, but (R) is false✓
4. (d)(A) is false, but (R) is true

Match items in List-I with items in List-II using the codes given below: List-I A. Liability for misappropriation by a partner B. Liability of a partner for torts C. Liability of a partner for holding out D. Doctrine of implied authority of a partner List-II

Section 26

Section 27

Section 28

Sections 18 and 19 Codes:

1. (a)A-3, B-4, C-1, D-2
2. (b)A-2, B-1, C-4, D-3
3. (c)A-1, B-2, C-3, D-4
4. (d)A-2, B-1, C-3, D-4✓

According to Section 12 of the Partnership Act, any difference arising as to ordinary matters connected with the business of partnership may be decided by

1. (a)the senior most partner
2. (b)an arbitrator
3. (c)a majority of partners✓
4. (d)a judge

Read Assertion (A) and Reason (R) and answer using codes given below: Assertion (A): Every partner is an agent of the other partner. Reason (R): Partnership is agency. Codes:

1. (a)Both (A) and (R) are wrong
2. (b)(A) is right, but (R) is wrong
3. (c)(A) is wrong, but (R) is right
4. (d)Both (A) and (R) are right and (R) is correct reason for (A)✓

Which are essentials of a partnership? Answer using codes given below:

A contract of two or more competent persons

Agreement to share profits

Mutual agency

Lawful business Code:

1. (a)Only 1, 2 and 3
2. (b)Only 1, 2 and 4
3. (c)Only 1, 3 and 4
4. (d)1, 2, 3 and 4✓

A partnership to create a monopoly

Twenty members forming a firm for tea trade on a railway platform

Trustees carry on business of a firm in their own name Codes:

1. (a)1, 2, 3 and 4
2. (b)2, 3 and 4 only
3. (c)2 and 3 only
4. (d)3 and 4 only✓

The chapter named Registration of firms in Partnership Act is applicable to Hindu Trading Families

Registration of firms is designed primarily to protect third parties and the absence of registration need not prevent disappearance of an unregistered or imperfectly registered firm Codes:

1. (a)(1), (2), (3) and (4) are correct
2. (b)Only (1), (2) and (3) are correct
3. (c)Only (3) and (4) are correct
4. (d)Only (4) is correct✓

A Hindu undivided family

Wakfs Codes:

1. (a)(1), (2), (3) and (4)
2. (b)Only (1), (3) and (4)
3. (c)Only (1)✓
4. (d)Only (3)

Read Assertion (A) and Reason (R) and answer by using codes below: Assertion (A): Salary drawn by a partner from the firm for his services rendered to it has been treated different from his right to get an additional amount in the form of salary as his share of the firm's profit. Reason (R): Because R.M. Chidambaram Pillai v. Commissioner of Income tax case laid down above principle. Codes:

1. (a)Both (A) and (R) are correct and (R) is correct reason for (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is right, but (R) is wrong
4. (d)(R) is right, but (A) is wrong

Read Assertion (A) and Reason (R) and answer using codes given below: Assertion (A): Partner of an erstwhile unregistered partnership firm can bring a suit to enforce a right arising out of a contract falling within the ambit of section 69 of the Indian Partnership Act. Reason (R): Because Judgement in case of Loonkaran Sethia v. Ivon E. John laid down above judicial principle. Codes:

1. (a)Both (A) and (R) are correct and (R) is correct reason for (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is right, but (R) is wrong
4. (d)(A) is wrong, but (R) is right

Match List-I with List-II and select the correct answer using the code given below: List-I A. Partnership not created by status B. Essentials of partnership C. Joint Hindu Family and partnership D. Partnership between outsiders and joint family List-II

CST v. K. Kelukutty

Kshetra Mohan v. Commr, of Excess Profit Tax

Rakesh Kumar Dinesh Kumar v. U.G. Hotels and Resorts Ltd.

Ganpat v. Annaji Code:

1. (a)A-3, B-1, C-4, D-2✓
2. (b)A-1, B-3, C-4, D-2
3. (c)A-3, B-1, C-2, D-4
4. (d)A-4, B-2, C-1, D-3

Match List-I with List-II and select the correct answer using the code given below: List-I (Duties of partners) A. Duty of absolute good faith B. Duty not to compete and 13(f) C. Duty of due diligence D. Duty to indemnify for fraud List-II (Relevant section under the Indian Partnership Act)

Section 16(b)

Section 12(b)

Section 10

Section 9 Code:

1. (a)A-1, B-4, C-2, D-3
2. (b)A-4, B-1, C-2, D-3✓
3. (c)A-4, B-1, C-3, D-2
4. (d)A-2, B-3, C-1, D-4

In which section of the Partnership Act it is laid down that there can be a partnership in a single or particular business venture?

1. (a)Section 8✓
2. (b)Section 9
3. (c)Section 10
4. (d)Section 11

Which one of the following is not within the scope of Implied Authority of a partner?

1. (a)The act done for carrying on the business of the kind carried on by the firm
2. (b)The act should be done in the usual way of business of the firm
3. (c)The act of acquiring immovable property on behalf of the firm✓
4. (d)The act must be done in the firm name or in any other manner expressing or implying an intention to bind the firm

A company can convert into Limited Liability Partnership: (A) By complying to requirements of the third schedule of Limited Liability Partnership Act, 2008 (B) It can convert if there is no security interest in its assets subsisting at the time of application (C) Partners of Limited Liability Partnership are the erstwhile shareholders of the company and no one else (D) All the assets, interests, rights and privileges of the company are transferred to the firm Choose the correct answer from the options given below:

1. (a)A only
2. (b)B only
3. (c)C only
4. (d)A, B, C, D - All✓

Arrange the provisions of the Indian Partnership Act, 1932 in chronological order (section wise): (A) Partnership at will (B) Mode of determining the existence of the partnership (C) Property of a firm (D) Duties of a partner Choose the correct answer from the options given below:

1. (a)B, A, D, C✓
2. (b)C, B, A, D
3. (c)A, C, B, D
4. (d)D, A, B, C

Where the money received from a third party by the firm, in ordinary course of business, is misapplied by one of the partners to his own use, then:

1. (a)Defaulting partner alone is liable for the same
2. (b)Third party has no remedy
3. (c)Firm is liable for the same✓
4. (d)Firm is not liable for the same

Every partner of a partnership firm is liable for all the acts of the firm done while he is a partner. This doctrine is called:

1. (a)The doctrine of holding out✓
2. (b)The doctrine of restitution
3. (c)The doctrine of estoppel
4. (d)The doctrine of proportionality

As per the Partnership Act, 1932 "Partnership" is defined under

1. (a)Section 8
2. (b)Section 7
3. (c)Section 5
4. (d)Section 4✓

Which provision of the Partnership Act explains the evidentiary value of entries in the Register of Firms?

1. (a)Section 65
2. (b)Section 66
3. (c)Section 67
4. (d)Section 68✓

Mark the incorrect statements about the circumstances in which Limited Liability Partnership (LLP) may be wound up by the tribunal

A. Where for a period of more than three months the number of partners is reduced to below two

B. If the LLP has acted against the interest of the sovereignty and integrity of India

C. If the LLP has made a default in filing with the Registrar the statement of account and solvency or Annual Return for any two consecutive financial years

D. If LLP is unable to pay its debts

Choose the correct answer from the options given below

1. (a)B, D only
2. (b)A, C only✓
3. (c)C, D only
4. (d)A, B only

Which of the following is NOT correct about the nature of limited liability partnership?

1. (a)It is a body corporate incorporated under the Act
2. (b)It is a legal entity separate from its partners
3. (c)It enjoys the benefit of perpetual succession
4. (d)It follows the principle of unlimited liability✓

Match the LIST-I with LIST-II LIST-I (Case Law) LIST-II (Related Concept)

A. Cox V/s Hickman I. Business must be taken in a practical sense

B. Stekel V/s Ellice II. Partnership between Karta and Coparcener

C. Lachhman Das V/s CIT III. Salaried partner

D. Smith V/s Anderson IV. Mutual Agency

Choose the correct answer from the options given below

1. (a)A-III, B-IV, C-I, D-II
2. (b)A-I, B-IV, C-II, D-III
3. (c)A-II, B-I, C-IV, D-III
4. (d)A-IV, B-III, C-II, D-I✓

Under the Limited Liability Partnership Act, 2008, Under Section 2(8), which of the following is not included in definition of "body corporate"?

1. (a)Company Under Section 2(20), Company Act, 2013
2. (b)A Company incorporated outside India
3. (c)A Corporation Sole✓
4. (d)A Limited Liability Partnership incorporated outside India

Read the following passage, and match the column: A negotiable instrument contains a contract and therefore must be supported by consideration. In order to be a holder in due course, the holder must have obtained the instrument before its maturity. An instrument payable on demand is current at least as long as no demand for payment is made. To make a holder in due course, the instrument must be complete and regular. A postdated cheque may not be complete and regular. Column-P: A. Negotiable Instrument B. Holder in due course C. Currency of instrument D. Complete and regular Column-Q:

Before maturity

Demand for payment

Post dated cheque

Consideration Codes:

1. (a)A-1, B-4, C-2, D-3
2. (b)A-2, B-3, C-1, D-4
3. (c)A-4, B-1, C-2, D-3✓
4. (d)A-4, B-3, C-1, D-2

Match items in Columns-P with items in Column-Q, according to provisions of the Negotiable Instrument Act. Columns-P: A. Definition of promissory note B. Drawer of cheque C. Holder's right to duplicate D. Dishonour Columns-Q:

Section 30

Section 45-A

Section 135

Section 4 Codes:

1. (a)A-2, B-4, C-1, D-3
2. (b)A-4, B-2, C-3, D-1
3. (c)A-4, B-1, C-3, D-2
4. (d)A-4, B-1, C-2, D-3✓

When a negotiable instrument is dishonoured, the party liable to pay, becomes bound to pay compensation to

1. (a)The bank
2. (b)The endorser
3. (c)Holder or endorser✓
4. (d)The Court

Find correct legal principle from following statements:

While collecting a cheque for a banker, the customer is under an obligation to present it promptly so as to avoid any loss due to change of circumstances.

While collecting a cheque for a customer, the banker is under an obligation to present it properly so as to avoid any loss due to change of circumstances.

While collecting a cheque for a customer, the banker is under no obligation to present it properly so as to avoid any loss due to change of circumstances.

While collecting a cheque for a banker, the customer is under no obligation to present it promptly so as to avoid any loss due to change of circumstances.

Match List-I with List-II and select the correct answer using the codes given below: List-I A. Inchoate stamped instrument B. Liability of acceptor of a negotiable instrument C. Liability of an endorser D. Liability of the drawee of a chaque List-II

Union Bank of India v. Ankur Corp.

Section 31 of the Negotiable Instrument Act.

Section 35 of the Negotiable Instrument Act.

Section 20 of the Negotiable Instrument Act. Code:

1. (a)A-1, B-4, C-3, D-2
2. (b)A-4, B-1, C-3, D-2✓
3. (c)A-4, B-1, C-2, D-3
4. (d)A-3, B-2, C-1, D-4

A negotiable instruments is presumed to be drawn for consideration

The statutory presumption envisaged under section 118(a) of the Negotiable Instrument Act is rebuttable Code:

1. (a)A-2, B-1, C-4, D-3✓
2. (b)A-1, B-2, C-3, D-4
3. (c)A-4, B-1, C-2, D-3
4. (d)A-1, B-3, C-2, D-4

Read Assertion (A) and Reason (R) and answer using codes given below: Assertion (A): Payer alone, whether a corporeal person or incorporeal person, shall be competent in case of dishonour of cheque. Reason (R): Because Section 138 of Negotiable Instrument Act mandates so. Codes:

1. (a)Both (A) and (R) are right and (R) is correct explanation of (A)
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is wrong but (R) is right
4. (d)(A) is right, but (R) is wrong

Which of the following are presumptions as to a negotiable instrument under section 118 of the Negotiable Instruments Act? Answer using codes given below:

presumption of contractual capacity

Presumption of consideration

Presumption of maturity of instrument

Presumption of date Codes:

1. (a)only 1 and 3
2. (b)only 2 and 4✓
3. (c)only 1 and 4
4. (d)only 1 and 2

Read Assertion (A) and Reason (R) and answer using the codes given below: Assertion (A): Where a bill is unintentionally cancelled by the holder or his agent and the cancellation is not apparent thereon, the bill is discharged. Reason (R): Above principle is laid down in Section 82 of the Negotiable Instruments Act. Codes:

1. (a)Both (A) and (R) are correct
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is right and (R) is wrong
4. (d)(A) is wrong and (R) is right

Every offence punishable under Section 147 of the Negotiable Instruments Act, 1881 is

1. (a)compoundable✓
2. (b)non-compoundable
3. (c)cognizable
4. (d)both (b) and (c) above

A Bill of Exchange or draft is a written order by the drawer or drawee to pay money to the payee

Bill of Exchange are primarily used in the International trade and are written orders by one person to his Bank to pay the bearer a specific sum on a specific date

Definition of Bill of Exchange is mentioned in the Section 6 of the Negotiable Instrument Act Choose the most appropriate option:

1. (a)1 and 4
2. (b)1, 2 and 4
3. (c)2 and 3✓
4. (d)3 and 4

Given below are two statements: Statement I: A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer. Statement II: Holder means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque, if payable to bearer or the payee or endorsee. In light of the above statements, choose the most appropriate answer from the options given below:

1. (a)Both Statement I and Statement II are correct
2. (b)Both Statement I and Statement II are incorrect
3. (c)Statement I is correct but Statement II is incorrect✓
4. (d)Statement I is incorrect but Statement II is correct

When a promissory note, bill of exchange or cheque is transferred to any person, so as to constitute that person the holder thereof, the Instrument is said to be:

1. (a)Negotiated✓
2. (b)Indorsed
3. (c)Accepted
4. (d)Transferred

Match List – I with List -II

I -II

List-I/I List-II

A. Application of the Act to electronic cheque and truncated cheque I. Sec.3A

B. Electronic Signature II. Sec. 81A -81 S

C. Secure electronic record

D. Validity of contracts formed through electronic means IV. Sec. 10A 10 S

Choose the correct answer from the options given below

1. (a)A - I, B – II, C - III, D - IV
2. (b)A - II, B - I, C- III, D - IV✓
3. (c)A - II, B - I, C- IV, D - III
4. (d)A - IV, B - III, C - II, D - I

Non-obstnate Clause in section 145 of the Negotiable Instrument Act, 1881 provides for which of the following

(A) dispenses with the procedure under section 200 of CrPC

(B) procedure of examination of complainant and witness on oath is done away

(C) affidavit of complainant and witness can be accepted

(D) sworn statement recording by the magistrate is dispensed with

Choose the correct answer from the options given below

1. (a)(A), (B) Only
2. (b)(A), (C) Only
3. (c)(B), (C), (D) Only
4. (d)(A), (B), (C), (D)✓

Which of the following are characteristics of a government promissory note

(A) It is a promise of President of India or Governor of a state

(B) It is regulated by the Indian Securities Act, 1886

(C) They are not negotiable instrument

(D) They can be assigned without endorsement

Choose the correct answer from the options given below

1. (a)(A), (B) Only✓
2. (b)(B), (C) Only
3. (c)(B), (D) Only
4. (d)(C), (D) Only

Match List - I with List - II

List- I (Provision/Concept)

(A) Dishonour of cheque for insufficiency of funds

List - II (Sections under the Negotiable Instrument Act, 1881) Section 9

(B) Holder in due course (II) Section 5

(C) Promissory Note (IIΙ) Section 138

(D) Bill of Exchange (IV) Section 4

Choose the correct answer from the options given below

1. (a)(A)-(III), (B)-(1), (C)-(IV), (D)-(II)✓
2. (b)(A)-(1), (B)-(II), (C)-(III), (D)-(IV)
3. (c)(А)-(IV), (B)-(IIШ), (C)-(II), (D)-(I)
4. (d)(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

Which of the following is not true in the context of a promissory note?

1. (a)It must be in writing and signed by the maker
2. (b)There must be an undertaking or promise to pay
3. (c)Such a promise must be conditional✓
4. (d)The promise must be in respect of payment of money only