Deck 2: Contract Law: Understanding Legal Agreements and Their Discharge, Breach, and Enforcement

Question 1

Moral pressure is involved in the case of

A)Coercion
B)Undue influence
C)Misrepresentation
D)Fraud

Answer 1

Undue influence

Question 2

A wrong representation when made without any intention to deceive the other party amounts to

A)Coercion
B)Undue influence
C)Misrepresentation
D)Fraud

Answer 2

Misrepresentation

Question 3

Which of the following statement is true?

A)A threat to commit suicide does not amount to coercion
B)Undue influence involves use of physical pressure
C)Ignorance of law is no excuse
D)Silence always amounts to fraud

Answer 3

Ignorance of law is no excuse

Question 4

In case of illegal agreements, the collateral agreements are;

A)Void
B)Valid
C)Voidable
D)Any of these

Question 5

An agreement the object or consideration of which is unlawful, is:

A)Void
B)Valid
C)Voidable
D)Contingent

Question 6

An agreement is void if it is opposed to public policy. Which of the following is not covered by heads of public policy.

A)Trading with an enemy
B)Trafficking in public offices
C)Marriage brokerage contracts
D)Contracts to do impossible acts

Question 7

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

A)Is discharged
B)Becomes enforceable
C)Becomes void
D)None of these

Question 8

Which of the following persons can perform the contract?

A)Promisor alone
B)Legal representatives of the Promisor
C)Agent of the Promisor
D)All of these

Question 9

A, B and C jointly promised to pay Rs.6000 to D. Before the performance of the contract, C dies. Here the contract;

A)Becomes void on C's death
B)Should be performed by A and B along with C's legal representatives
C)Should be performed by A and B alone
D)Should be renewed between A, B and D

Question 10

A contract is discharged by novation which means the;

A)Cancellation of the existing contract
B)Change in one or more terms of the contract
C)Substitution of existing contract for a new one
D)None of these

Question 11

A contract is discharged by recission which means the;

A)Change in one or more terms of the contract
B)Acceptance of lesser performance
C)Abandonment of rights by a party
D)Cancellation of the existing contract

Question 12

When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as:

A)Abandonment of a contract
B)Remission of contract
C)Actual breach of contract
D)Anticipatory breach of contract

Question 13

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

A)As discharged and bring an immediate action for damages
B)As operative and wait till the time for performance arrives
C)Exercise option either (a) or (b)
D)None of these

Question 14

In case of breach of contract, which of the following remedy is available to the aggrieved party?

A)Suit for recission
B)Suit for damages
C)Suit for specific performance
D)All of these

Question 15

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

A)Damages
B)Injunction
C)Quantum merit
D)None of these

Question 16

Generally, which of the following damages are not recoverable?

A)Ordinary damages
B)Special damages
C)Remote damages
D)Nominal damages

Question 17

A contract depend on the happening or non happening of the future uncertain event, is a

A)Uncertain contract
B)Contingent contract
C)Void contract
D)Voidable contract

Question 18

A contingent contract is ;

A)Void
B)Voidable
C)Valid
D)Illegal

Question 19

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

A)Happens
B)Becomes impossible
C)Doesn't happen
D)Either of these

Question 20

A agrees to pay Rs.1,00,000 to B if he brings a star from the sky. This is a contingent contract and

A)Illegal
B)Valid
C)Voidable
D)Void

Question 21

Which of the following statement is true?

A)An agreement enforceable by law is a contract
B)An agreement is an accepted proposal
C)Both (a) and (b)
D)None of these

Question 22

A voidable contract is one which;

A)Can be enforced at the option of the aggrieved party
B)Can be enforced at the option of the both parties
C)Cannot be enforced in a court of laws
D)Court prohibits

Question 23

On the acceptance of an offer by a offeree

A)Only the acceptor becomes bound by accepting the offer
B)Only the offeror becomes bound as his terms are accepted
C)Both the acceptor and offeree becomes bound by the contract
D)None of these

Question 24

A, by a letter dated 25th December 1998, offers to sell his house to B for Rs.10 lakhs. The letter reaches on 27th Dec.1998, who posts his acceptance on 28th Dec. 1998 which reaches A on 30th Dec.1998. Here the communication of offer is completed on;

A)25th Dec.1998
B)27th Dec.1998
C)28th Dec.1998
D)30th Dec.1998

Question 25

In the above question, the communication of acceptance is complete against A on 28th Dec.1998 and against B on;

A)25th Dec.1998
B)27th Dec.1998
C)28th Dec.1998
D)30th Dec.1998