1.An offer may lapse by

1. Revocation
2. Counter Offer
3. Rejection of offer by offeree
4. All of these

2. Which of the following statement is true?

1. There can be a stranger to a contract
2. There can be a stranger to a consideration
3. There can be a stranger to a contract & consideration
4. None of the above

3. Ordinarily, a minor's agreement is

1. Void ab initio
2. Voidable
3. Valid
4. Unlawful

4. The threat to commit suicide amounts to

1. Coercion
2. Undue influence
3. Misrepresentation
4. Fraud

5. On the valid performance of the contractual obligations by the parties, the contract;

1. Is discharged
2. Becomes enforceable
3. Becomes void
4. None of these

6. In case of anticipatory breach, the aggrieved party may treat the contract;

1. As discharged and bring an immediate action for damages
2. As operative and wait till the time for performance arrives
3. Exercise option either (a) or (b)
4. None of these

7. A contingent contract depend on the happening of the future uncertain event can be enforced when the event;

1. Happens
2. Becomes impossible
3. Doesn't happen
4. Either of these

8. On the acceptance of an offer by a offeree

1. Only the acceptor becomes bound by accepting the offer
2. Only the offeror becomes bound as his terms are accepted
3. Both the acceptor and offeree becomes bound by the contract
4. None of these

9. Which of the following persons are not competent to contract?

1. Minors
2. Persons of unsound mind
3. Persons disqualified by law
4. All of these

10.When the consent of a party is obtained by coercion undue influence, fraud or misrepresentation, the contract is;

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

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

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

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

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

13.An agreement to do n illegal act(eg: sharing the earnings of smuggling business) is

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

14.LA, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay the entire amount of Rs.60000. Here

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

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

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

16.Which is the following is false? An acceptance:

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

17.Which is the following is false? Consideration:

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

18.Consideration may be

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

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

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

20.In case of illegal agreements, the collateral agreements are;

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

21A contract is discharged by novation which means the;

1. Cancellation of the existing contract
2. Change in one or more terms of the contract
3. Substitution of existing contract for a new one
4. None of these

22.Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for;

1. Damages
2. Injunction
3. Quantum merit
4. None of these

23.Which of the following statement is true?

1. An agreement enforceable by law is a contract
2. An agreement is an accepted proposal
3. Both (a) and (b)
4. None of these

24.As a general rule, an agreement made without consideration is;

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

25.Which of the following persons do not fall under the category of persons of unsound mind?

1. Idiot
2. Lunatics
3. Drunken
4. Alien

26.A contract made by mistake about some foreign law, is;

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

27.An agreement, which prevents a person from carrying lawful business is

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

28.A contingent contract dependent on the non happening of a future uncertain event A contingent contract dependent on the non happening of a future uncertain event becomes void when such event

1. Happens
2. Does not become impossible
3. Does not happen
4. Both (a) and (b)

29.A party entitled to rescind contract, losses the remedy where

1. He has ratified the contract
2. Third party has acquired right in good faith
3. Contract is not separable and recession is sought of a party only
4. All of these

30.When offer is made to a definite person, it is known as

1. General offer
2. Cross offer
3. Counter offer
4. Special offer