Deck 5: Contract Law and Sale of Goods

Question 1

A contract is made where:

A)X agrees with Y to discover a treasure by magic.
B)X bids at a public auction
C)A sees a sea
D)A sit in a public Omni bus.

Answer 1

A sit in a public Omni bus.

Question 2

In case of void agreements, collateral transactions are

A)Also void
B)Unenforceable
C)Not affected
D)Illegal

Answer 2

Not affected

Question 3

The delivery of goods by one person to another for some purpose, upon a contract and that they shall, when the purpose is accomplished, be returned or otherwise disposed of by accounting to the directions of the person delivering them, then it is called:

A)Contingent contract
B)Bailment
C)Pledge
D)Contract of indemnity

Answer 3

Bailment

Question 4

A, a minor bought 11 expensive coasts from B. he was, at that time, adequately provided with clothes, but B did not know this fact. In such a case

A)Minor is personally liable to pay for the coast
B)Minor's property can be attached for payment
C)Minor is liable since he has Misled into supply of coats
D)Minor is not liable at all

Question 5

A husband, by a registered agreement promised to pay wife Rs 5,000 p.m. there was no consideration moving from the wife to the husband. This contract is

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

Question 6

In Indian Contract Act, the term consensus ad idem means

A)Parties under a mistake
B)Parties under the free consent
C)Parties agreeing upon the same thing in same sense
D)None of these

Question 7

Sonia contracts with Anshul to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value. Anshul knows that Sonia is mistaken and takes no steps to correct the error. Now Sonia wants to cancel the contract based on fraud. Which of the following statement is correct?

A)Sonia can cancel the contract alleging fraud
B)Sonia cannot cancel the contract
C)Sonia can cancel the contract alleging undue influence
D)Sonia can claim damages

Question 8

Which of the following is false with respect to minor entering a contract?

A)An agreement with or by a minor is void ab initio
B)A minor can be a beneficiary of a contract
C)The guardian of a minor is responsible for his acts
D)A minor cannot ratify a contract on attaining majority

Question 9

Anuj agrees to pay Rs10,000 to Manoj if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes:

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

Question 10

A invites B for coffee in Coffee day Restaurant and B accepts the invitation. On the appointed date, B goes there but A does not come. In this case

A)B has no remedy against A.
B)B has to wait for another invitation from A.
C)B can sue A for not honoring his words.
D)A has to invite B again, to keep the promise.

Question 11

Where a contract has to be inferred from the conduct of parties, it is called

A)Express contract.
B)Implied contract.
C)Tacit contract.
D)Unlawful contract

Question 12

Voidable contract is one

A)Which is lawful.
B)Which is invalid.
C)Which is valid if it is not avoided by the party entitled to do so.
D)Which is unlawful.

Question 13

Undue influence can be presumed between

A)Guardian and Ward
B)Mother and Daughter
C)Doctor and Patient
D)All of the above

Question 14

Wagering Agreement is a _____________ agreement

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

Question 15

A minor was facing a criminal prosecution for smuggling drugs. He borrowed Rs. 5000 to hire an advocate to defend him in the court of law. What is the remedy available to the creditor if the minor does not return the money on his own?

A)The creditor cannot recover the amount from the minor since a contract with a minor is void ab initio
B)The amount of loan can be recovered from minor's property since it is a loan for necessaries
C)The creditor can recover his amount of loan from the minor on his (minor's) attaining the age of majority
D)The creditor can recover his amount from the parent or guardian of the minor

Question 16

Future goods mean goods to be manufactured or produced or acquired by the seller

A)In future prescribed time
B)After making of contract
C)Before making of contract
D)None of above

Question 17

A sold a stolen car to B which was subsequently recovered by the police form B's possession and he (B) was forced to return the same to the true owner. Here, there is breach of implied condition as to

A)Merchantability
B)Fitness for buyer's purpose
C)Title
D)None of these

Question 18

Where the goods are sold by description, there is an implied condition that the goods shall

A)Be fit for buyer's purpose
B)Free from any defects
C)Correspond with the description
D)Free form any encumbrance

Question 19

As per the doctrine of caveat emptor incorporated in Section 16, there is no implied conditions or warranty in a contract of sale as to the

A)Merchantability.
B)Wholesomeness.
C)Quality or fitness for buyer's purpose.
D)None of these.

Question 20

Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue for:

A)Damages for non-delivery
B)Damages for non-acceptance
C)Specific performance
D)Compensation

Question 21

The unpaid seller has right of stoppage of goods in transit only where the buyer

A)Becomes insolvent
B)Refuses to pay price
C)Acts fraudulently
D)All of these

Question 22

An unpaid seller is having rights against

A)Goods only
B)The buyer only
C)Both goods and buyer
D)None of the above

Question 23

Seller has right of resale where

A)Goods are perishable
B)Seller has reserved such right.
C)Seller gives notice
D)All of these.

Question 24

The voluntary transfer of possession from one person to another is called

A)Transfer
B)Change of possession
C)Delivery
D)None of above

Question 25

The agent having in customary course of business as such agent authority either to sell goods or to consign goods for the purpose of sale or to buy goods or to raise money on the security of goods is called

A)Agent
B)Mercantile agent
C)Partner
D)None of above