RIGHT DIRECTION ACADEMY c) Void

LAW CET | LAW SEM | CLAT d) Illegal contract

6. Which of the following is an

Subject: Legal Aptitude acceptance?
Topic: Law of Contract a) I accept your offer to sell your car
Marks: 100 marks provided you give me a discount
b) I will buy your car if you sell your
house as well
PART - I
c) I accept your offer on the condition
1. An agreement made without that you deliver the car tomorrow
consideration shall be void if: d) None of the above
a) Made on account of love and
affection 7. A voidable contract is:
b) Is a promise to compensate for a) Enforceable at the option of one
something done party
c) Is a promise to pay time barred debt b) Enforceable by law
d) There is mistake of fact by both c) An agreement and not a contract
parties d) Not enforceable

2. If any part of a single 8. Consideration must be of some

consideration for one or more value, but need not be:
objects, or any one or any part of a) Inadequate
any one of several considerations b) Minimum
for a single object, is unlawful, c) Adequate
the agreement is: d) Maximum
a) Valid
b) Partly valid 9. What are the essential
c) Void ingredients of a contract?
d) Voidable a) Free consent, competence, offer,
acceptance, consideration and a
3. A contract which is formed lawful object.
without the free consent of b) Free consent, competence, offer,
parties is: acceptance, lawful consideration and
a) Void ab initio a lawful object.
b) Void c) Free consent, competence, offer,
c) Unlawful acceptance, consideration and
d) Voidable at the instance of party object.
whose consent was not free. d) None of these

4. An agreement in which one party 10. A contract of life insurance is a:

is a minor is: a) Contingent contract
a) Void b) Wagering contract
b) Voidable c) Contract of indemnity
c) Void ab initio d) Contract of bailment
d) Void at the option of either party
11. What is the Doctrine of law that
5. An agreement not enforceable by prescribes an agreement to be
law is said to be: void in the event of impossibility
a) A proposal of the act called?
b) Voidable a) Doctrine of Absolute liability
b) Doctrine of Quantum liability b) Offer
c) Doctrine of Frustration c) Consideration
d) Doctrine of Res Judicata d) Contract

12. Identify an example for the 18. A legally binding contract can be;
concept of “invitation to offer” in a) Oral
contracts law: b) In writing
a) Tender c) In writing and registered
b) Catalogue d) Either oral or in writing
c) Both a and b
d) None of the above 19. Does the legal term
“consideration” mean payment
13. A contract by which one party of money only/
promises to save the other from a) Yes
loss caused to him by the b) No
conduct of the promisor himself, c) Depends
or by the conduct of any other d) None of the above
person is called
a) Contract of bailment 20. of the essential elements of
b) Contract of indemnity partnership is:
c) Contract of contingency a) Sharing of profit
d) Contract of promissory estoppel b) Capital contribution
c) Mutual agency
14. Fiduciary relationship is a d) Both a and c
relationship based on:
a) Contract 21. statement I: Agreement without
b) Trust consideration is always valid.
c) Money Statement II: All contracts are
d) Blood relation agreements but all agreements are not
contracts.
15. Agreement between _____ does a) Both are correct
not create legal obligation. b) Both are incorrect
a) Husband and wife c) Only Statement II is correct
b) Charitable activity d) Only statement I is correct.
c) Both a and b
d) None of the above 22. The consideration or object of an
agreement is lawful, unless:
16. Essentials conditions for a valid
contract are: a. The Court regards it as immoral, or
a) There must be an offer and opposed to public policy.
acceptance b. It is forbidden by law or Is of such a
b) The parties should be capable of nature that, if permitted, it would
entering into contract defeat the provisions of any law.
c) There must be free consent of the c. Is fraudulent or involves or implies
parties injury to the person or property of
d) All of the above another.
d. All of the above
17. Under Indian Contract Act, “past,
present and future” recognized 23. What is a sound mind for the
as types of; purposes of contracting:
a) Acceptance
a. A person is said to be of sound mind something with a view to obtain
for the purposes of making a the assent of B is called
contract, if, at the time when he
makes it, he is capable of a) Contract
understanding it and of forming a b) Proposal
rational judgement as to its effect c) Agreement
upon his interest. d) None of the above
b. A person is said to be of sound mind
for the purposes of making a 28. Goods displayed in a
contract, if, at the time when he supermarket with a price tag is
makes it, he is capable of
a) Proposal
understanding it.
b) Offer
c. A person is said to be of sound mind
c) Invitation to offer
for the purposes of making a
d) None of these
contract, if, he is capable of
29. When there are two obligations
understanding it and of forming a
on each party to the contract at
rational judgement as to its effect
the time of the formation of the
upon his interest.
contract, it is called
d. A person is said to be of sound mind
for the purposes of making a a) Unilateral contract
contract, if, at any time when he b) Executory contract
makes it, he is capable of c) Bilateral contract
understanding it and of forming a d) Voidable contract
rational judgement as to its effect
upon his interest. 30. A contract implied by law is
known as
24. which is correct
a) Proposal + acceptance = promise a) Contingent contract
b) Promise + consideration = agreement b) Quasi contract
c) Agreement + enforceability = c) Expressed contract
contract d) Implied contract
d) All the above
31. On the face of the ticket for a
25. Where a corporation enters into journey the words ‘for conditions
a contract beyond the scope of see back’ are printed in small
the objects, such a contract is print, the passenger
said to be
a) May not take note of the
a) Intra vires conditions
b) Ultra vires b) Is not bound by the condition
c) Ultimo vires c) Is bound by the conditions
d) Infra vires whether he takes care to
read them or not
26. The starting point of a contract is d) None of the above.

a) Agreement 32. Acceptance must be absolute and

b) Enforceability _________________
c) Promise a) Conditional
d) Proposal b) Prior
c) Unconditional
27. Signifying willingness by A to B to d) All of the above
do or abstain from doing
 33. A contract to do or not to do c) Voidable contract
something, if some event, d) An illegal agreement
collateral to such contract, does
or does not happen is called: 39. The doctrine of privity of
a) Wager contract means:
b) Conditional contract a) A contract without consideration
c) Contingent contract b) A void agreement
d) None of these c) A stranger to a contract can use
d) A stranger to a contract cannot use
34. The agreement in restraint of
the marriage of any person, 40. The decision of Mohri Bibi v.
other than a minor, is: Dharmodas Ghose was related
a) Void to:
b) Voidable a) Offer and communication
c) Valid b) Acceptance and its communication
d) Valid at the option of female c) Fraud
d) Capacity of a minor to enter into a
35. A contract to perform the contract
promise, or discharge the
liability, of the third person in 41. The person making the proposal
case of his default is called: is called the and the person
a) Contract of indemnity accepting the proposal is called :
b) Contract of guarantee a) Proposor/ Proposee
c) Contingent contract b) Promisee/ Promisor
d) Conditional contract c) Promisor/Promisee
d) Proposee/ Proposor
36. A contract entered into under
which of the following 42. Every promise and every set of
circumstances shall not be promises, forming the
voidable? consideration for each other, is
a) Coercion called as:
b) Fraud a) A voidable contract
c) Misrepresentation b) A contract
d) Mistake c) A void contract
d) An agreement
37. An agreement between two
bookies to pay money to each 43. The Indian Contract Act, 1872
other on the basis of the win or extends to:
loss of the match being played a) The State of Jammu and Kashmir.
between two countries cricket b) The Union Territories of India
team is: c) The whole of India except the State
a) Valid of Jammu and Kashmir.
b) Void d) The whole of India.
c) Valid but illegal 44. The Indian Contract Act,1872
d) Void and illegal which was enacted on 25 April,
1872 came into force with effect
38. A contract to which one of the from:
parties has agreed under a) 1st May, 1872
coercion or pressure is: b) 1st September, 1872
a) Valid contract c) 1st October, 1872
b) Void agreement d) 1st November, 1872
 45. Consent is defined as: fraudulent within the meaning of
a) Two or more persons are said to section 17, the contract,
consent when they agree. nevertheless, if the party whose
b) Two or more persons are said to consent was so caused had the
consent when they agree upon the means of discovering the truth
same thing in the same sense. with ordinary diligence:
c) Two or more persons are said to a) may be voidable
consent when they understand the b) may not be not voidable
same thing. c) is voidable
d) Two or more persons are said to d) is not voidable
consent when they agree upon the
same thing
PART - II
46. Where a minor has entered into
a contract for purchase of 1. Principle: The consideration or object of an
necessary items. In such cases: agreement is unlawful if it is forbidden by
a) The minor is not personally liable. law. Every agreement of which the object or
b) Minor’s estates are liable to make consideration is unlawful is void.
good. Facts: 'X' promises to pay 'Y' 50000, ifhe ('Y')
c) Minor’s guardian is liable. commits a crime, 'X' further promises to
d) The minor is personally liable indemnify him ('Y') against any liability
arising thereof. 'Y' agrees to act as per X's
47. Consent is said to be free when it promise. Which of the following derivations
is not caused by: is correct?
a) Very much influence (a) There is a contract between 'X' and 'Y'
b) Undue influence (b) There is an agreement between 'X' and 'Y'
c) Slightly influence which can be enforced by the court of law.
d) Influence (c) There is an agreement between 'X' and 'Y'
which cannot be enforced by the court of
48. A, being in debt to B, the money law.
lender of his village, contracts a (d) There is a voidable contract between 'X'
fresh loan on terms which appear and 'Y'.
to be unconscionable. This will
be termed as: 2. Principle: The consideration or object of an
a) Fraud agreement is unlawful if the court regards it
b) Coercion as opposed to public policy. Every agreement
c) Undue influence of which the object or consideration is
d) Misrepresentation unlawful is void.
Facts: 'X' promises to obtain for 'Y' an
49. When consent to an agreement is employment in the ₹ public service and 'Y'
caused by coercion, fraud or promises to pay 500000 to 'X' Which of the
misrepresentation, the following derivations is correct?
agreement is a contract : (a) There is a contract between 'X' and 'Y'
a) Voidable at the option of the party (b) There is a voidable contract between 'X'
whose consent was so cause. and 'Y'
b) Illegal (c) There is an agreement between 'X' and 'Y'
c) Depends upon the circumstances of which can be enforced by the court of law
the case. (d) There is an agreement between 'X' and 'Y'
d) Void which cannot be enforced by the court of law
50. If the consent was caused by
misrepresentation or by silence,
3. Principle: Minor's agreement is void from
the very beginning. It can never be validated. 6. Principle: A gift comprising both existing
It cannot be enforced n the court of law. and future property is void as to the latter.
Facts: 'A', a boy of 16 yrs of age, agrees to Facts: 'X' has a house which is owned by him.
buy a camera from 'B', who is a girl of 21 yrs He contracted to purchase a plot of land
of age. Which of the following derivations is adjacent to the said house, but the sale (of
correct? the plot of land) in his favour is yet
(a) There arises a contract between 'A' and to be completed. He makes a gift of both the
'B' to sell/buy the camera in question properties (house and land) to 'Y'
(b) There arises an enforceable agreement Under the afore-mentioned circumstances,
between 'A' and 'B' to sell/buy the camera in which of the following derivations is correct?
question (a) Gift of both the properties is valid
(c) There does not arise any contract (b)Gift of both the properties is void
between 'A' and 'B' to sell/buy the camera in (c)Gift of house is void, but the gift of the
question plot of land is valid
(d) There arises a voidable contract between (d) Gift of house is valid, but the gift of the
'A' and 'B' to sell/buy the camera in question plot of land is void

4. Principle: Acceptance (of offer) must be 7. LEGAL PRINCIPLE: Every partner is liable,
communicated by the offeree to the offerer jointly with all the other partners and also
so as to give rise to a binding severally, for all acts of the firm done while
obligation. The expression by the offeree to he is a partner.
the offerer' includes communication FACTUAL SITUATION: A and B started a
between their authorised agents. partnership firm for providing vehicle
Facts 'X' made an offer to buy Y's property repairing services. C approached the
for a stipulated price 'Y' accepted it and firm for getting his car repaired and noticed
communicated his acceptance to 'Z', a that only B was present in the office. C
stranger Which of the following derivations informed the problem and B started
is correct? repairing the car. While B was repairing, he
(a) Y's acceptance resulted in an agreement filled petrol instead of oil in the engine. As a
(b) Y's acceptance did not result in any consequence, a small blast occurred and
agreement damaged the car. Now, C sued both A and B
(c) Y's acceptance resulted in a contract for the damage so caused. Decide.
(d) Y's acceptance resulted in a promise DECISION:
(a) Both liable since B was authorised to
5. Principle: Agreements in restraint of carry out the work of the firm.
marriage are void. (b)A is not liable since A has not authorised B
Facts: 'X' enters into an agreement, with 'Y' to do something which was not for the
where under he agrees not to marry anybody benefit of the firm.
else other than a person (c)A is not liable since it was B's fault and for
whose name starts with the letter 'A' and that only B can be held liable.
promises to pay 100000 to 'Y' ifhe ('X') (d)A is liable since it was negligence on his
breaks this agreement. part that he was not resent in the office
Which of the following derivations is correct? when C came.
(a) There is a contract between 'X' and 'Y'
(b) There is an agreement between 'X' and 'Y' 8. LEGAL PRINCIPLE: Every agreement, by
which can be enforced by the court of law which any party is restricted absolutely from
(c) There is an agreement between 'X' and 'Y' enforcing his rights in respect
which cannot be enforced by the court of law of any contract, by the usual legal
(d) There is a voidable contract between 'X' proceedings in the ordinary tribunals, is void
and 'Y' to that extent.
FACTUAL SITUATION: Feroz and Pinto 2 Uncertain agreements are void
entered into an agreement for rendering agreements.
certain services. As per the prevailing law, 3. Rejected offers can be accepted only if
the agreement may be enforced either at renewed
Jaipur or Udaipur. The agreement itself, FACTUAL SITUATION: Bakshi wanted to
however, specifies that upon breach, the purchase a particular land. He sent a letter to
parties can only approach courts at his cousin. Dutt, offering him 4 lakhs for it.
Jaipur. Feroz breaches the contract and Dutt replied that he would not sell it
Pinto, being a resident of Udaipur. would like below 5 lakhs. Bakshi communicated his
to sue him in Udaipur. He challenged the willingness to pay this amount Dutt did not
validity of the clause. sell the land to Bakshi. Bakshi sued him for
DECISION: breach of contract.
(a)Pinto will succeed as Feroz had made him DECISION:
suffer and the law must take his convenience (a)Dutt is liable because once he
into account and allow him to sue in communicates an offer to Bakshi and Bakshi
Udaipur. accepts it, a contract comes
(b) Pinto will succeed as the contract does into existence.
not allow him to institute any legal (b)Dutt is liable as he has misled Bakshi by
proceedings in any court or tribunal in his actions.
Udaipur. (c)Dutt is not liable because he has rejected
(c)Pinto will fail as the contract does not the offer by giving a counter offer which is
restrain him from instituting legal also not specific.
proceedings in Jaipur. (d) Dutt is not liable as there is no legally
(d)Pinto will fail as he was of sound mind enforceable contract
while entering into contract and having
accepted it, he cannot now deny his 11. LEGAL PRINCIPLE:An agreement is void if
obligation. the court regards it as opposed to the public
policy.
9. LEGAL PRINCIPLES: A contract is an FACTUAL SITUATION : Sunita, while her
agreement enforceable by law. husband Shankar was alive, promised to
FACTUAL SITUATION: Amita invited Bina to marry Neel in the event of Shankar's death.
her house for dinner. Bina accepted the Subsequently, Shankar died, but Sunita
invitation but later did not go. On Bina's refused to marry Noel. Neel sues Sunita for
failure to attend, Amita filed a suit against damages for breach of premise.
Bina for the price of non-consumed food. DECISION:
Will the law enforce this agreement? (a) Sunita is liable as she is to bound to marry
DECISION: Neel.
(a)No,it is a social agreement. (b)She is liable to compensate Neel for
(b)Yes, Amita can recover amount for non- breach of premise.
consumed food. (c)Neel can marry someone else.
(c)No, as Bina did not accept the invitation in (d)She is not liable as the contract is opposed
writing. to public policy and so void.
(d)No, because the law does not take
account of trivial things. 12. LEGAL PRINCIPLES:
1. Consideration must be of value in the eyes
10. LEGAL PRINCIPLES: of law.
1. Once a person accepts another's offer, and [Link] is not real if it is illusory.
signifies such acceptance to the former, a FACTUAL SITUATION: Arjun received
contract comes into summons to appear at a trial as a witness on
existence between them behalf of Bitu, the accused. Bitu promised to
pay him a sum of 1,000 for his trouble. On
default by Bitu, Arjun filed a suit to recover DECISION:
the said sum. Will he succeed? (a)Sam cannot recover as Mani never
DECISION: intended to deal with him.
(a)No, as the consideration is of no value in (b)Can recover the price as he had supplied
the eyes of law. goods only against the order made by Mani.
(b)Yes, as the contract is supported by (c)Sam cannot recover as it was only an
consideration. invitation to offer by Mani on which no
(c)No, as there is no consideration for the acceptance can be given by Sam.
premise. (d)Sam can recover as the price of the goods
(d)Yes, as he appeared before court only as an offer once accepted results in a
after Bitu agreed to pay him the amount of contract.
Rs. 1,000.
13. LEGAL PRINCIPLE: A minor is not 15. Principle: When one person signifies to
competent to contract. another his willingness to do or abstain from
FACTUAL SITUATION: Deep, a 9th standard doing anything, with a view to obtaining the
student realize that he being a minor, he is assent of that person to such an act or
not permitted by law to execute a contract, abstinence, he is said to have made a
appoints Mandeep as his agent to conclude proposal.
purchase of a land to gift it to his mother on Factual Situation: Xavier telegrammed to
her birthday. Mandeep accordingly prepares William, "Will you sell me your house?
the papers for the transaction but at the last Telegram the lowest cash price. William also
minute the seller who had agreed to sell it replied by Telegram "Lowest price for my
now refuses to sell it contending that he house is 30 lakh. Xavier immediately sent his
does not wish to sell the land to a minor. reply consenting to William's telegram by
Deep seeks to enforce the contract against saying "I agree to buy your house for 30 lakh
the seller. asked by you." William refused to sell his
DECISION: house.
(a) Deep can enforce the contract-since Decision
Mandeep is his agent. Deep is deemed to (a) William cannot refuse to sell the house
have personally entered into a contract. because the contract has already been made
(b) Deep cannot enforce the contract-only (b) William can refuse to sell the house
Mandeep can, since seller has entered into because it was only invitation to offer and
the contract with Mandeep. not the real offer
(c)Deep cannot enforce the contract since he (c) It was not a valid offer because
is a minor. willingness to enter into a contract was
(d)Deep can neither appoint an agent nor absent
enforce the contract since he is a minor. (d) None of the above

14. LEGAL PRINCIPLES: 16. LEGAL PRINCIPLE: A contract which is

1. Acceptance must be given only by the impossible to perform becomes void.
person to whom the offer is made. FACTUAL SITUATION: Surender agreed to
2. Communication of acceptance to a person deliver a specific quality of rice to Sonakshi
who did not make the offer does not bind identified by both of them. Before delivery,
the offeror. the rice was burnt by short circuit. Is
FACTUAL SITUATION: Pal sold his business to Surender discharged from the performance
Sam without disclosing it to his customers. of the
Mani, an old customer sent an order for contract?
goods to Pal by name. Sam, the new owner, DECISION:
executed the order. Mani refuses to accept (a) Surender is discharged from performance
the goods from Sam as he intended to deal as the subject matter of the contract is
only with Pal. In a suit by Sam against Mani: destroyed.
(b) Surender is discharged from performance deliberately concealed the fact of his medical
as the subject matter has been specifically treatment for a serious ailment, which he
identified. had undergone only a few weeks ago.
(c)Surender is not discharged from (a) The concealment of fact by Zameer
performance as he can procure rice from amounted to fraud.
other sources. (b)the act of Zameer did not amount to
(d) None of the above. fraud, as disclosing the fact would have
resulted in exposure of his privacy.
17. LEGAL PRINCIPLE: Nobody shall (c)The act of Zameer did not amount to any
unlawfully interfere with a person's use or misrepresentation.
enjoyment of land, or some right over, or in (d)The act of Zameer amounted to innocent
connection with it. The use or enjoyment, misrepresentation.
envisaged herein, should be normal and
reasonable taking 20. Principle: Where both the parties to an
into account surrounding situation agreement are under a mistake as to a
FACTUAL SITUATION : Jogi and Prakash were matter of fact essential to the agreement,
neighbours in a residential locality. Prakash the agreement is void.
started a typing class in a part of his house Factual Situation: Roxanne supplies designer
and his typing sound disturbed jogi who clothes to big showrooms and famous cloth
could not put up with any kind of continuous houses. Max agrees to buy a certain
1 noise. He filed a suit against Prakash. consignment of only pink designer clothes
DECISION: for his shop due to the pink coloured theme
(a) Prakash is liable, because he should not of his famous shop. Issue cropped up when
have started y typing class in his house. the exclusive pink coloured dresses were not
(b) Prakash is liable, because as a neighbour, delivered to Max's showroom, but to some
he should have realised Jogi's delicate other buyer, who had earlier contracted with
nature, Roxanne's store and all this was neither in
(c) Prakash is not liable, because typing the knowledge of Roxanne nor Max Decide
sound did not disturb anyone else other than whether the contract between Roxanne
Jogi. and Max is void?
(d) None of the above. (a) Yes, because Roxanne and Max were
under a mistake as to matter of fact which is
18. The object of which one of the following essential to the agreement
writs is to prevent a person to hold public (b)No, because Max's agreement was fresh,
office which he is not legally entitled to hold? so it is legally binding
(c)Yes, because an earlier commitment made
(a) Mandamus by store owner to some other buyer 'is far
(c) Certiorari more relevant than another commitment
(b) Quo warranto (d) Roxanne and Max's contract is valid
(d) Prohibition
DIRECTIONS (Qs. 21-27): The following
19. Principle: It is a case of fraud where a questions consist of two statements, one
party to a contract knows or believes a fact labelled as 'Assertion' and the other as
to be true, but conceals it actively from the Reason Read both the statements carefully
other party with a view to induce that person and answer using the codes given below
to (a)Both A and Rare true and R is the correct
enter into the contract. explanation of A
Facts: While taking a life insurance policy, in (b)Both A and R are true but R is not the true
reply to questions by the insurance company explanation of A
during the inquiry into his proposal, Zameer (c)A is true but R is false
(d)A is false but R is true
 Facts: A doctor asked his patient to make a
21. Assertion (A): The entries in the three payment of rupees Ten Lakh for treatment of
legislative lists are not always set out with his fever. The patient paid an amount
scientific precision of rupees Five Lakh and promised to pay the
Reason (R): The entries are not powers but remaining amount after the treatment. After
are only fields of legislation treatment the patient recovered from fever.
The doctor demanded the remaining
22. Assertion (A): No action lies for more amount from the patient. The patient
damage caused by some act which does not refused to pay.
violate a legal right (a) The contract is not enforceable as doctor
Reason (R): An action lies for interference was in dominating position.
with another's legal right even where it (b) The contract is enforceable against the
causes no actual damage. patient by the doctor.
(c) The contract is enforceable against the
[Link] (A): The parties to the contract doctor.
must be competent to contract otherwise it (d)The contract is not enforceable without
will be a void contract the consent of the patient.
Reason (R): All wagering agreements are
void. 29. Principle: Ownership in property consists
of right to possess, right to use, right to
[Link] (A): Custom to have force of law alienate and right to exclude others. Sale is
must be followed from time immemorial complete when property gets transferred
Reason (R): Custom represents common from the seller to the buyer on sale.
consciousness of the people. Facts: 'A' sold his car to 'B'. After this, 'B'
requested 'A' to keep the car in his care on
[Link] (A): An accused person cannot behalf 'B' for one month. 'A' agreed.
be forced to give his thumb impression. (a) Sale of car is complete.
Reason (R): An accused person cannot be (b) Sale will be automatically completed after
compelled to be a witness against himself the expiry of one month
(c)Sale of car is not complete
[Link] (A): In federalism, there is (d)Sale will be completed when 'B' will take
division of powers between the centre and the delivery of the car.
the States.
Reason (R): The legislation is not invalid 30. Principle: Every agreement, of which the
merely because it incidentally encroaches object or consideration is opposed to public
upon matters which have been assigned to policy, is void. An agreement which has the
another organ. tendency to injure public interest or public
welfare is one against public policy. What
[Link] (A): International law is not law constitutes an injury to public interest or
at all. public welfare would depend upon the times
Reason (R): International law has no judicial and the circumstances.
system to enforce the law by applying Facts: 'A' promises to obtain for 'B' an
sanctions. employment in the public service, and 'B'
promises to pay rupees 5,00,000/- to 'A'.
28. Principle: Where one of the parties to a (a) The agreement is void because rupees
contract was in a position to dominate the 5,00,000/- is excessive.
decision of the other party, the (b) The agreement is valid, as it is with
contract is enforceable only at the option of consideration for public service.
the party who was in a position to dominate (c) The agreement is valid, as it is a contract
the decision of the other party. between two parties with their free consent.
(d) The agreement is void, as the object and
consideration for it is opposed to public (a) B has accepted the proposal of A
policy. (b) B has not accepted the proposal of A.
(c) It is not clear if B has accepted the
[Link]: When a person makes such a proposal of A.
statement which lowers other person's (d) It is not clear whether A made a proposal
reputation in the estimation of other to B.
persons, is liable for committing defamation.
Facts: 'A' writes a letter to 'B' in which he [Link]: An agreement with a boy below
uses abusive language against 'B' and also the age of eighteen years is not enforceable
states that 'B' is a dishonest person. 'A' put by law
the letter in a sealed envelope and delivered Facts: A man entered into an agreement with
it to 'B' a girl of seventeen years of age.
(a) 'A' has committed a moral wrong (a) The agreement is enforceable by law.
(b) 'A' has not committed defamation (b) The agreement is not enforceable by law.
(c) 'A' has not committed moral wrong (c) The agreement is enforceable by the girl.
(d) 'A' has committed defamation (d) No inference can be drawn.

32. Principle: Whoever takes away with him [Link]: Sale of liquor is illegal. All
any minor less than sixteen years of age if a agreements relating to prohibited items do
male, or less than eighteen years of age if a not exist in the eyes of law.
female, out of the custody of parents of Facts: 'A' entered into an agreement with 'B'
such minor without the consent of such for the sale of liquor 'A' failed to supply the
parents, is said to commit no offence. agreed quantity of liquor to B.
Facts: 'A', a man, took away a girl below (a) B can bring a legal action against A.
sixteen years to Mumbai without informing (b) B cannot bring any legal action against A.
the parents of the girl. (c) A can bring a legal action against B.
(a) 'A' committed an offence against the girl (d) A and B can initiate appropriate legal
as well as her parents proceeding against each other.
(b)'A' committed an offence against the girl.
(c)'A' committed no offence against the [Link]: The communication of a
parents of the girl. proposal is complete when it comes to the
(d)'A' committed no offence against the girl knowledge of the person to whom it is made.
as well as her parents. Facts: 'A' sent a letter making a proposal to
'B' to purchase the house of B.
33. Principle: Nothing is an offence which is (a) The communication of
done in the exercise of the right of private proposal is complete when A
defence sent the letter.
Facts: 'A', under the influence of madness,
attempts to kill 'B'. 'B' to save his life kills 'A" (b) The communication of proposal is
(a)'A' has not committed an offence because complete when B's wife received it.
he was mad (c) The communication of proposal is
(b)'B' has committed an offence. complete when B's wife handed over the
(c)'B' has not committed any offence letter to B.
(d)'A' has committed the offence of attempt (d) The communication of proposal is
to murder complete when B reads the letter.

34. Principle: Acceptance of proposal must 38. Principle: An agreement may be entered
be the exact mirror image of the proposal. into orally, in writing, or by conduct.
Facts: 'A' made a proposal to 'B' to sell a Facts: 'A' went to the shop of 'B' and picked a
chair for 500. 'B' is desirous of buying the tooth brush and gave a cheque of Rupees
said chair for 400. twenty to B and left the shop.
(a) A entered into an agreement with B. decision of the other party, the contract is
cheque. enforceable only at the option of the party
(b) A did not enter into an agreement with B. who was in a position to dominate decision
(c) Payment of tooth brush cannot be made of the other party.
through a Facts: A doctor asked his patient to make a
(d) A should have carried a currency note of payment of 10,00,000/- (Ten Lac Only) for
Rupees twenty to make the payment. treatment of his fever The patient paid an
amount of 5,00,000/- (Five Lac Only) and
39. Principle: Property consists of right to promised to pay the remaining amount after
possess, right to use, right to alienate and the treatment. After treatment the patient
right to exclude others. Sale is complete recovered from fever The doctor demanded
when property gets transferred from the the aining amount from the patient The
seller patient refused to pay
to the buyer (a) The contract is enforceable against the
Facts: 'A' sold his car to 'B' B requested A to doctor
keep the car in his care on behalf B for one (b) The contract is enforceable against the
month. A agreed. patient
(a) Sale of car is complete (c) The contract is not enforceable
(b) Sale of car is not complete. (d) The contract is not enforceable against
(c) Sale will be completed when B keeps the the patient.
car in his own care
(d) Sale will be automatically completed after [Link]: When, at the desire of one per
the expiry of one month son, any other person has done or abstained
from doing something, such act or
40. Principle: A person, who is usually mad, abstinence or promise is called a
but occasionally not mad, may make a consideration
contract when he is not mad for the promise
Facts: 'A' generally remains in the state of Facts: X, the uncle of Y, made a promise to
madness and rarely becomes capable of pay him an amount of ,00,000/- as reward if
understanding anything. Y quits smoking and drinking within one
(a) A can make a contract year. Y quit smoking and drinking within six
(b) A can never make a contract. months.
(c) A can make a contract at any time (a) Consideration has moved from the side of
whenever he pleases X
(d) A can make a contract only for his own (b) Consideration has moved from the side of
benefit. Y
(c) No consideration has moved from the side
[Link]: An agreement without free of Y
consent can be enforced only at the option of (d) Quitting smoking and drinking cannot be
the party whose consent was not free a
Facts: A obtains the consent of B to enter consideration
into an agreement by putting a gun on the
head of B's girl friend. [Link]: Law never enforces an
(a) B can enforce the agreement. impossible promise
(b) B cannot enforce the agreement. fact: 'A' made a promise to 'B' to discover
(c) A can enforce the agreement. treasure by S magic.
(d) Neither A nor B can enforce the (a) Law will enforce the promise
agreement. (b) Law will not enforce the promise.
(c) Law will enforce the promise only at the
[Link]: Where one of the parties to a option of A
contract was in position to dominate the
(d) Law will enforce the promise only at the consent of C, D and E, but obtains their
option of B consent after the marriage
(a) B has fulfilled the condition
45. Principle: Mere silence as to facts likely to (b) B has not fulfilled the condition
affect the decision of a person to enter into a (c) The condition is illegal
contract is not fraud. (d) B must divorce his wife
Facts: A sells to B (A's daughter who is a
minor) a horse which A knows to be [Link]: A condition must be complied in
unsound. A says nothing to B about the order to claim the benefit of an agreement.
unsoundness of the horse. Facts: A agrees to transfer a farm to B; if B
(a) A has committed fraud shall not go to England within three years
(b) A has committed no fraud after the date of the agreement, his interest
(c) There cannot be a contract between a in the farm shall cease. B does not go to
father and daughter England within the term prescribed
(d) The daughter did not ask therefore the (a) B's interest in the farm continues
father did not tell, hence no fraud (b) B's interest in the farm does not continue
(c) B has a fundamental right to go to
[Link]: When a party to a contract has England or not to go to England and hence
refused to perform, or disabled himself from the condition is illegal
performing his promise in its entirety, the (d) The agreement between A and B is void
other party shall not put an end to the
contract [Link]: Terms of any written contract
Facts: A engaged B on April 12 to enter his can be proved by producing the written
service on June 1, but on May 11, A wrote to contract only and oral evidence is excluded.
B that his services would not be needed On Facts: A gives B receipt for money paid by B.
May 22, B joined C for employment Oral evidence is offered to prove the
(a) B cannot put the contract to an end. payment.
(b) B can put the contract to an end (a) Oral evidence to prove payment is
(c) C can put his contract with B to an end allowed
(d) A must pay damages to B (b) Oral evidence to prove payment is not
allowed
47. Principle: An interest created, dependent (c) Oral evidence is always allowed to prove
upon a condition fails, if the fulfilment of the all facts
condition is (d) Oral evidence is generally disallowed
Facts: A promises to pay impossible
Ten Lakh to B on condition that he shall
marry A's daughter C. At the date on which
A gave Ten Lac to B, C was dead.
(a) B's interest fails
(b) B's interest fails because of immorality
(c) B's interest fails because of prohibition by
law
(d) B's interest does not fail

48. Principle: A condition must be complied

with after the happening of the event to
which such a condition is attached
Facts: A promises to pay 5,000 to B on the
condition that he shall marry with the
consent of C, D and E. B marries without the