1. S offered a reward to anyone who returns his lost dog. F bought the dog to S without having heard of the offer. Which of the following is correct?
a) F is entitled to the reward
b) F is not entitled to the reward
c) S has to find the dog himself
d) No reward can be given for the return of lost dog

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2. _____________Contract is good in substance but suffers from some technical defect:
a) Valid
b) Illegal
c) Voidable
d) Unenforceable

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1. A consideration is:
a) A reason behind making a proposal
b) A condition of the fulfillment of the other’s promise
c) Doing or abstaining from doing something at the desire of the promisor
d) Reward for something which one has done for another

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2. Consideration in India may be:
a) Past, present or future
b) Present only
c) Past only
d) Future only

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1. A person who had the means of discovering the truth with ordinary diligence can avoid the contract on the ground of misrepresentation this statement is ________
a) True
b) False
c) Partly true
d) Can’t say

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2. Which of the following can be party to enter into a contract?
a) A convict under sentence
b) Joint stock company
c) Minor
d) All of the above.

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1. Discharge by mutual agreement may involve ___________:
a) Novation
b) Rescission
c) Alteration
d) All of these

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2. “Novation” means ________
a) Alteration in terms of the contract
b) Recission of the contract
c) Substitution of an existing contract with a new one
d) Remission of performance of contract

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1. G, a film star agreed to act exclusively for Y, a film producer, for one year. During the year, she contracted to act for some other producer. In this case, Y:
a) Can restrain G by an injunction
b) Cannot sue G at all
c) Has to produce the firm with other actors only
d) Cannot restrain G by an injunction

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2. E contracts to marry F. Before the agreed date of marriage, E marries K. Here, F is entitled to sue E for :
a) Anticipatory Breach in an express manner
b) Actual Breach in an express manner
c) Anticipatory Breach in an implied manner
d) Actual Breach in an implied manner

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1. U leaves his goods at V’s place who consumes them. V is bound to pay the price. V’s act of consumption of goods constitutes an implied promise to pay, under the principal of :
a) Deemed Contractual Obligations
b) Semi Contractual Obligations
c) Contractual Obligations
d) Quasi – Contractual Obligations

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2. To claim reimbursement of money paid on behalf of another person, which of the following is not required?
a) Payment must be made to a third party to whom the another party was liable
b) Payment must be voluntary
c) There should be some legal or other coercive process compelling the payment
d) Original liability should be of another person

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1. When a person gives keys of his car to another person, what type of delivery is this?
a) Actual delivery
b) Symbolic delivery
c) Constructive delivery
d) All of these

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2. Where by a contract of sale, the seller purports to effect a ………………the contract operates as an agreement to sell:
a) Future sale of existing goods
b) Present sale of existing goods
c) Future sale of future goods
d) Present sale of future goods

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1. When a person sells the goods by infringing the copyrights or trademark of the other, there is breach of an implied condition
a) As to title
b) As to description
c) As to merchantability
d) None of the above

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2. Implied conditions include:
a) Conditions as to title
b) Condition in case of sale by description
c) Condition in case of sale by sample
d) All of these

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1. Non owner can convey better title under:
a) Sale by mercantile agent
b) Sale by one of joint owners
c) By person under voidable contract not rescinded until sale
d) All of these

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2. A delivers a horse to B for trial for 8 days. It was agreed that sale would be completed if the horse was found suitable for B’s purpose. The horse died on 3rd day without any fault of either party. It was held that contract was:
a) Completed
b) To be completed
c) Void
d) Illegal

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1. The rights available to an unpaid seller of goods under the Sale of Goods Act, 1930 are:
a) Lien on goods only
b) Stoppage of goods in transit only
c) Right to resell
d) All the above

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2. The unpaid seller is not required to inform the buyer in case he resells the goods but the goods must be:-
a) Perishable goods
b) Non-perishable goods
c) Durable goods
d) Consumer goods

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1. Johnson is an employee of ABC Ltd. He is entitled to a salary of Rs. 8,00,000 and entitled to a commission of 20%. If the profit in a year is Rs. 1 crore, then Johnson is:
a) Employee
b) Partner
c) Both partner & Employee
d) None of these

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2. X and Y formed a partnership firm to undertake construction of a Terminal for Northern Railway at Pune. This partnership is a:
a) Limited Partnership
b) Partnership at Will
c) Particular Partnership
d) Joint venture

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1. By transfer of a partner’s interest for share:
a) Partner does not cease to be a partner.
b) Partner ceases to be a partner.
c) Partner has the right to share the profits
d) Partner has right to defend suit against the firm.

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2. The partner of the firm can be expelled from the firm with the consent of:
a) All the partners
b) Majority of the Partners
c) Any working partner of the firm
d) None of the above

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1. In the absence of any contract to the contrary insolvency of a partner results in:
a) Dissolution of partnership, but not of the firm
b) Dissolution of firm as well as partnership
c) Neither dissolution of firm, nor dissolution of partnership
d) None of the above

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2. A partnership firm will not be Compulsory dissolved if __________.
a) One of the partners of the firm becomes insolvent
b) The business of the firm becomes illegal.
c) Only one of the several business which can be separated from the other business of the firm becomes illegal.
d) The different business run by the firm cannot be separated.

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