Question 1

An agreement enforceable by law is&#10;A)agreement&#10;B)contract&#10;C)offer&#10;D)promise

Accepted Answer

A contract is an agreement between parties that is enforceable by law, distinguishing it from mere agreements or promises which may not have legal enforceability.

Question 2

Every promise and every set of promises, forming the consideration for each other is an&#10;A)agreement&#10;B)offer&#10;C)contract&#10;D)acceptance

Accepted Answer

An agreement is formed when a promise or a set of promises serve as the consideration for each other. This is the basic definition of an agreement in the context of contract law.

Question 3

In a contract of indemnity the right of the indemnifier is similar to that of the:&#10;A)debtor&#10;B)creditor&#10;C)surety&#10;D)agent

Accepted Answer

In a contract of indemnity, the indemnifier (the party who promises to compensate for the loss) has rights similar to that of a surety. A surety is someone who takes responsibility for another's performance of an undertaking, for example, their appearing in court or the payment of a debt. Just like a surety, an indemnifier has the right to benefit from any securities held by the indemnified party (the party receiving the compensation) and can step into the shoes of the indemnified party to exercise their rights against a third party responsible for the loss.

Question 4

In a contract of indemnity, minimum no of parties are&#10;A)4&#10;B)3&#10;C)2&#10;D)1

Accepted Answer

In a contract of indemnity, there are a minimum of 2 parties involved: the indemnifier (who promises to compensate for the loss) and the indemnitee (who is protected against the loss).

Question 5

The sale of goods act is of:&#10;A)1903&#10;B)1923&#10;C)1930&#10;D)1932

Accepted Answer

The Sale of Goods Act was enacted in 1930. It is a contract law that was adopted in India and it governs the sale and purchase of goods.

Question 6

Seller is a person who&#10;A)sells&#10;B)buys&#10;C)debtor&#10;D)transferee

Accepted Answer

A seller is defined as a person who sells goods or services, which is the activity of transferring ownership in exchange for money or other compensation.

Question 7

Document of title includes&#10;A)business reports&#10;B)railway receipt&#10;C)cash memo&#10;D)email

Accepted Answer

A document of title refers to a legal document or certificate that provides evidence of a person's right to property or goods. Among the options given, a railway receipt is considered a document of title because it represents the receipt of goods for shipment by rail and typically indicates the terms under which the goods are transported and delivered, including the rights to claim the goods at the destination. Business reports, cash memos, and emails do not serve as documents of title in the legal sense of representing rights to goods or property.

Question 8

A person coming forward to accept after it has been dishonoured is called:&#10;A)acceptor for honour&#10;B)acceptor for paying&#10;C)payment for honour&#10;D)holder

Accepted Answer

An acceptor for honour is someone who, after a bill has been dishonoured, steps in to accept the bill on behalf of the drawer or endorser, thereby agreeing to pay the bill at maturity if the original drawee does not.

Question 9

Protest for better security is done for publicity stunt.&#10;A)true&#10;B)false&#10;C)attention&#10;D)fun

Accepted Answer

Protests for better security are typically organized to draw attention to genuine concerns about safety and to demand improvements, not as a publicity stunt.

Question 10

When an instrument is lost, it is presumed that it was duly stamped&#10;A)true&#10;B)false&#10;C)not inchoate&#10;D)inchoate

Accepted Answer

When an instrument is lost, there is a presumption under law that it was duly stamped, which means it had the necessary stamp affixed to it to make it valid and legal.

Question 11

Which one of the following element is not necessary for a contract ?&#10;A)Competent parties&#10;B)Reasonable terms and conditions.&#10;C)Free consent&#10;D)Lawful concentration

Accepted Answer

The answer of Which one of the following element is...

Question 12

An agreement becomes a contract if :&#10;A)It is by free consent of the parties.&#10;B)Parties are competent.&#10;C)It is enforceable by law.&#10;D)None of the above .

Accepted Answer

The answer of An agreement becomes a contract if :&#10;A)It...

Question 13

In a standardized contract :&#10;A)The individual has no choice but to accept and sign on&#10;B)The individual must be protected in contract.&#10;C)The agreement is without consideration.&#10;D)None of the above.

Accepted Answer

The answer of In a standardized contract :&#10;A)The individual has...

Question 14

The correct sequence in the formation of a contract is :&#10;A)Offer, acceptance, agreement, consideration.&#10;B)Agreement, consideration, offer,acceptance.&#10;C)Offer , Consideration, acceptance, agreement.&#10;D)Offer,acceptance, consideration, agreement.

Accepted Answer

The answer of The correct sequence in the formation of...

Question 15

A sells, by auction to B a horse which A knows to be unsound. A says nothing to B about the horse unsoundness. A does :&#10;A)Fraud&#10;B)Misrepresentation&#10;C)No fraud&#10;D)Undue Influence

Accepted Answer

The answer of A sells, by auction to B a...

Question 16

A petient in a lunatic Asylum who is at intervals of sound mind :&#10;A)May not contract.&#10;B)May contract.&#10;C)May contact during those intervals when he is of sound mind.&#10;D)May contract only after he becomes completely of sound mind .

Accepted Answer

The answer of A petient in a lunatic Asylum who...

Question 17

Which is not the correct statement ?&#10;A)If consent is the result of coercion, the agreement is&#10;B)If a party is minor, the agreement is void .&#10;C)If the object of an agreement is unlawful, the agreement is void.&#10;D)If the consideration of an agreement is unlawful, the agreement

Accepted Answer

The answer of Which is not the correct statement ?&#10;A)If...

Question 18

What is the purpose behind the enactment of Sale of Goods Act, 1930?&#10;A)To define the laws relating to the sale of goods&#10;B)To consolidate and amend the laws relating to the sale of goods&#10;C)To consolidate, amend and define the laws relating to the sale of goods&#10;D)To define and amend the laws relating to the sale of goods

Accepted Answer

The answer of What is the purpose behind the enactment...

Question 19

Section 2(1) of Sale of Goods Act defines 'buyer' as:&#10;A)Person who buys goods and services&#10;B)Person who agrees to buy goods&#10;C)Person who buys or agrees to buy goods&#10;D)Person who buys or agrees to buy goods and services

Accepted Answer

The answer of Section 2(1) of Sale of Goods Act...

Question 20

Before the enactment of Sale of Goods Act, the provisions regarding Sale of&#10;A)Indian Contract Act, 1872&#10;B)Indian Registration Act, 1908&#10;C)Transfer of Property Act, 1882&#10;D)Indian Partnership Act, 1932

Accepted Answer

The answer of Before the enactment of Sale of Goods...

Question 21

Which of the following cannot be said to be included in the term &#34;goods&#34; defined under section 2(7) of the Sale of Goods&#10;A)Stock&#10;B)Shares&#10;C)Growing crops&#10;D)Actionable claims

Accepted Answer

The answer of Which of the following cannot be said...

Question 22

The voluntary transfer of possession from one person to another is called&#10;A)Transfer&#10;B)change of possession&#10;C)Delivery&#10;D)None of above

Accepted Answer

The answer of The voluntary transfer of possession from one...

Question 23

Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:&#10;A)Right of lien on goods for the price while the goods are in possession of seller.&#10;B)Right of stopping the goods in transit, in case of insolvency of buyer&#10;C)Right of resale as limited by the Act&#10;D)Right of withholding delivery where the property in the goods has passed to the buyer

Accepted Answer

The answer of Which of the following is not the...

Question 24

Future goods means goods to be manufactured or produced or acquired by the seller&#10;A)In future prescribed time&#10;B)after making of contract&#10;C)before making of contract&#10;D)none of the above

Accepted Answer

The answer of Future goods means goods to be manufactured...

Question 25

Bearer cheques are also known as------ cheques.&#10;A)Crossed&#10;B)General&#10;C)Special&#10;D)Open

Accepted Answer

The answer of Bearer cheques are also known as------ cheques.&#10;A)Crossed&#10;B)General&#10;C)Special&#10;D)Open...

Deck 1: Contract Law and Sale of Goods Act