1. In telephonic conversation, the acceptance is completed when:
a) The words are heard by offeror
b) The words are spoken by offeree
c) The words are heard and action is taken.
d) None of these.

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2. A asks B a watch repairer, to repair his watch without forming any contractual relationship, still a legal relationship has arisen and it will create ________.
a) Express Contract
b) Implied Contract
c) Tacit Contract
d) Formal Contract

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1. Which of the following is not an exception to the rule, No consideration, No contract:
a) Natural love and affection
b) Compensation for involuntary services
c) Completed gift
d) Agency

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2. Newton owes Rs. 18,000 to Johnson. Johnson promises to accept Rs. 10,000 in full settlement of the account. The agreement is:
a) Unenforceable
b) Voidable
c) Valid
d) Illegal

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1. A person who enters into a contract with a minor is _____.
a) Responsible for Losses arising out of contract.
b) Not responsible for all the losses.
c) Responsible for giving compensation granted to a suit
d) Cannot sue the minor.

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2. An intentional misrepresentation amounts to _____.
a) Fraud
b) Misrepresentation
c) Undue Influence
d) All the above.

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1. A agrees to pay Rs. 10,000 to B after 2 years. During this period B dies. After 2 years, B’s son C claims the amount from A. C’s claim is __________
a) Invalid
b) Enforceable
c) Not enforceable
d) Unlawful.

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2. Reciprocal promises are _______________.
a) Promises made by both parties to the contract
b) Promise made by promisor only
c) Promise made by promisee only
d) None of these.

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1. __________ damages are awarded to establish a right of decree for the breach of contract.
a) Ordinary damages
b) Nominal damages
c) Special damages
d) Liquidated damages

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2. The court may order for a specific performance of a contract where:
a) One party prevents the other party from performance of the contract
b) Damages are not adequate remedy
c) The promisee has not attempted to mitigate the loss
d) Damages payable are huge.

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1. The Indian Contract Act deals with the following Quasi –
Contractual Obligations:
(i)  Claim for necessaries supplied to a person incompetent to contract
(ii)  Responsibility of finder of goods
(iii) Re – imbursement of money paid, due by another
(iv) Obligation of person enjoying benefit of non – gratuitous act
a) (ii) & (iii)
b) (i) & (ii)
c) (i), (ii), (iii) & (iv)
d) (iii) & (iv)

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2. The basis of ‘Quasi Contractual relations' is the:
a) Existence of valid contract between the parties in compliance of Section 10 of the Indian Contract Act.
b) Prevention of unjust enrichment at the expense of others
c) Existence of a voidable contract between the parties.
d) None of the above

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1. If the goods are in a deliverable state, the buyer:
a) Is bound to take delivery
b) Is not bound to take delivery
c) Has the option to take or not to take the delivery.
d) All of the above

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2. When the delivery of goods takes place by way of handing over the document of title to goods, it is called __________
a) Deemed Delivery
b) Symbolic Delivery
c) Constructive Delivery
d) Physical Delivery.

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1. A warranty is a stipulation _________to the main purpose of contract:
a) Collateral
b) Optional
c) Contingent
d) Essential

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2. In case of sale of goods by sample as well as by description, the implied conditions are that the bulk of the goods:
a) Shall correspond with the sample
b) Correspond with both the sample as well as description
c) Shall correspond with the description and need not correspond with the sample
d) Shall correspond with the sample and may or may not correspond with the descriptions

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1. If the seller refuses to take away the goods, the buyer becomes:
a) Bailer of goods
b) Bailee of goods
c) Owner of goods
d) Dealer of goods

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2. If goods were delivered to buyer and after the delivery, the goods were destroyed, then who will suffer the loss?
a) Buyer
b) Seller
c) Both the buyer and seller
d) None of these

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1. Where the seller expressly reserves the right of resale in case the buyer makes a default. If there are losses to the seller, on a resale, the seller:
a) Cannot claim the same form the buyer as damages
b) Can claim the same from the buyer as damages
c) Sue the buyer for not purchasing
d) None of the above

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2. Sale is a “right in rem”
a) No
b) Yes
c) Depends on the direction of court
d) None of the above

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1. Every partner is an agent of the firm as regards the ________.
a) Debtors
b) Partners
c) Creditors
d) Employees

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2. Each partner in a partnership firm is in the position of
a) Only an agent
b) Only a Principal
c) Agent as well as Principal
d) Neither Agent nor Principal

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1. According to the Indian Partnership Act, 1932. the term act of the firm means an act or omission by ___________ which gives an enforceable right to or against the firm:
a) Any partner
b) All the partner
c) Agent of the firm
d) Any of the above.

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2. Reconstitution of firm takes place in case of:
a) Admission of partner
b) Retirement of partner
c) Expulsion of partner
d) All of the above

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1. The conclusive evidence of registration of firm is:
a) The certified copy of register of firm
b) The register of Central Government.
c) The certificate of registration of firm
d) None of these

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2. There is compulsory dissolution of the firm:
a) On the death of majority of partners
b) On the insolvency of all the partners
c) In the case of continuous losses
d) In the case of deadlock in the management.

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