Ghanshyam and Afzal are good friends. They are traders and together keep on doing business transaction very often. In April 2016, they enter in a contract. Afzal has certain confidential information from his private sources about some change in prices that would affect Ghanshyam's willingness to proceed with the contract. As per Indian Contract Act, 1872, identify which of the following is applicable.
A. Afzal is bound to inform Ghansyham about the change in price because he is a close friend to him
B. Afzal is bound to inform Ghanshyam about the change in price-because they have been doing business transactions together
C. Afzal is bound to inform Ghanshyam about the change in price because otherwise that would amount to fraud since it would clearly show Afzal's intentions to mislead Ghansham
D. Afzal is not bound to inform Ghanshyam about the change in price
Select an option to see the answer and solution.
A's son forged B's name to a promissory note. B under threat of prosecuting A's son obtains a bond from A for the amount of the forged note. If B sues on this bond the court
A. Has no jurisdiction in this case
B. Must not set aside the bond
C. May set aside the bond
D. None of above
Select an option to see the answer and solution.
In a valid contract, what comes first
A. Enforceability
B. Acceptance
C. Promise
D. Proposal
Select an option to see the answer and solution.
For the purpose of pledge, delivery of possession of goods
A. Has to be actual
B. May be constructive
C. Either actual or constructive
D. May be symbolic
Select an option to see the answer and solution.
The acceptance must be
A. Received within a week
B. Received within a fortnight
C. Absolute and unqualified
D. Absolute and qualified
Select an option to see the answer and solution.
When consent to an agreement is caused by misrepresentation under Indian Contract Act, 1872 the agreement is:
A. Void
B. Valid
C. Voidable
D. Illegal
E. None of the above
Select an option to see the answer and solution.
An agreement not enforceable by law is said to be:
A. Void contract
B. Voidable contract
C. Illegal contract
D. Quasi-contract
Select an option to see the answer and solution.
Mistake as to law in force in India makes the contract:
A. Void
B. Voidable
C. Neither void nor voidable
D. Impossible to perform
Select an option to see the answer and solution.
"Commercial impossibility is no impossibility at all." This rule of law was laid down by the Supreme Court in the case of
A. Banwarilal v. Sukhdarshan
B. Satyabrat Ghose v. Mugneeram & Co.
C. M/s. Bhagwandas v. M/s. Girdharilal
D. Seth Mohanlal v. Grain Chambers
Select an option to see the answer and solution.
Mohit lends Rs. One Lakh to Som where Narain was the surety. The contract in this transaction provided that the liability of Narain is limited to Rs. 50,000. The contract is:
A. Void
B. Irregular
C. Voidable
D. Valid
Select an option to see the answer and solution.
Any act is done, without the authority or knowledge of a person on behalf of that person, that person
A. Can disown the act
B. Can ratify the act
C. Either ratify or disown the act
D. Can disown the act but cannot ratify the same
Select an option to see the answer and solution.
The Contract Act of 1872 was enacted on
A. 25th April, 1872
B. 25th May, 1872
C. 25th June, 1872
D. None of above
Select an option to see the answer and solution.
Contractual liability arises where:
A. There is offer and acceptance only
B. There is intention to create legal obligation
C. There is loss to one party
D. The loss of one party is the gain of the other party
Select an option to see the answer and solution.
Which one of the following make an agreement void?
A. Mistake of one of the parties
B. Mistake of law
C. Mistake of a foreign law
D. Mistake of fact by both the parties
Select an option to see the answer and solution.
If the sum fixed represents a genuine pre-estimate of the probable damages that are likely to result, from a breach of contract, it is considered as:
A. Liquidated damages
B. Penal damages
C. Special damages
D. General damages
Select an option to see the answer and solution.
A change of nature of obligation of a contract is known as
A. Alteration
B. Repudiation
C. Rescission
D. Novation
Select an option to see the answer and solution.
Which one of the following statements is correct?
A. An agreement is void unless it is duly supported by adequate consideration
B. In a valid contract, there can be an oral promise to compensate a person who has already voluntarily done something for the promisor
C. Under Indian Law, consideration need not move at the desire of the promisor
D. Indian Law does not recognize past consideration
Select an option to see the answer and solution.
A, B and C jointly promise to pay D 3,000 rupees. D may compel:
A. Either A or B or C to pay him 3,000 rupees
B. Either A or B to pay him 3,000 rupees
C. Either B or C to pay him 3,000 rupees
D. All to pay him 3,000 rupees simultaneously
Select an option to see the answer and solution.
An action for breach of contract, at the option of the plaintiff, can be brought at the place:
A. Where the defendant voluntarily resides or carries on business
B. Where the defendant personally works for gain
C. Where the cause of action wholly or in part arises
D. Either of them
Select an option to see the answer and solution.
Minor entering into a contract misrepresenting his age
A. Is estopped from pleading his minority
B. Cannot be estopped from pleading his minority
C. The contract is void
D. Both B and C
Select an option to see the answer and solution.
