MCQOPTIONS
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MCQOPTIONS
This section includes 370 Mcqs, each offering curated multiple-choice questions to sharpen your UGC-NET knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
Under Sec. 2 (b) of the Indian Contract Act, 1872 if the person to whom the proposal is made signifies his assent thereto the proposal is said to have been |
| A. | Accepted |
| B. | Agreed |
| C. | Provisionally agreed |
| D. | Tentatively accepted |
| Answer» B. Agreed | |
| 102. |
M is minor, B, the borrower, approaches M for a loan on the basis of a mortgage of the house owned by B. Hence, M advances the money and B executed a mortgage in favour of M, a minor. In these circumstances |
| A. | the mortgage is not enforceable by M, because he is a minor. |
| B. | the mortgage is enforceable but only when he attains majority. |
| C. | the mortgage is enforceable by M even though he is minor. |
| D. | None of the above |
| Answer» D. None of the above | |
| 103. |
A foreigner |
| A. | is competent to enter into contract if he fulfills the conditions of section 11. |
| B. | is not competent to enter into contract. |
| C. | can enter into contract with permission of Central Govt. |
| D. | can enter into contract with the permission of court. |
| Answer» B. is not competent to enter into contract. | |
| 104. |
S sells certain goods to B of Bomba y. The goods are handed over to the ra ilways for transmission to B. In the meantime, B sells the goods to a third party T for consideration without the consent of S. B becomes insolvent. In this case— |
| A. | S has the right of stoppage in transit. |
| B. | S has lost his right of stoppage in transit. |
| C. | Station Master has the right of stoppage in transit. |
| D. | None of the above |
| Answer» D. None of the above | |
| 105. |
For a valid contract of sale, delivery may be |
| A. | Actual delivery |
| B. | Symbolic delivery |
| C. | Constructive delivery |
| D. | All of the above |
| Answer» E. | |
| 106. |
A gives a recognizance binding him in a penalty of 500 to appear in the court on a certainday. He forfeits his recognizance. He is |
| A. | liable to pay the whole penalty. |
| B. | not liable to pay the penalty |
| C. | liable to pay partially |
| D. | none of the above |
| Answer» B. not liable to pay the penalty | |
| 107. |
Voluntary transfer of possession from one person to another is called as |
| A. | Ownership |
| B. | Delivery |
| C. | Gift |
| D. | License |
| Answer» C. Gift | |
| 108. |
Which of the following is not a Negotiable Instrument as per the Negotiable Instrument Act,1881? |
| A. | Bill of exchange |
| B. | Delivery note |
| C. | Cheque |
| D. | Share certificate |
| Answer» E. | |
| 109. |
When a cheque is payable across the counter of a bank it is called |
| A. | OTC cheque |
| B. | Open cheque |
| C. | Crossed Cheque |
| D. | Restricted cheque |
| Answer» C. Crossed Cheque | |
| 110. |
When both the parties to an agreement are under a mistake as to matter of fact essential to an agreement, the agreement is |
| A. | Valid |
| B. | Illegal |
| C. | Voidable |
| D. | Void |
| Answer» B. Illegal | |
| 111. |
A valid tender or offer of performance must be |
| A. | made at proper time |
| B. | made at proper place |
| C. | made to the proper person |
| D. | all of the above |
| Answer» E. | |
| 112. |
The term ‘Negotiable Instrument’ is defined in the Negotiable Instruments Act, 1881, underSection. |
| A. | 12 |
| B. | 13 |
| C. | 13A |
| D. | 2(d) |
| Answer» C. 13A | |
| 113. |
How many parties are involved in a bill of exchange? |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 5 |
| Answer» C. 4 | |
| 114. |
Mr. A promises in writing to pay time barred debt to Mr. B. This is |
| A. | Not enforceable |
| B. | Enforceable |
| C. | Voidable |
| D. | None of the above |
| Answer» C. Voidable | |
| 115. |
Delivery of goods means |
| A. | Voluntary transfer of possession |
| B. | Compulsory transfer of possession |
| C. | Exchange of goods |
| D. | Voluntary transfer of ownership. |
| Answer» B. Compulsory transfer of possession | |
| 116. |
Mr. Ajit threatened to commit suicide if his wife did not execute sale deed in favour of his sister. Wife executed the sale deed. This is |
| A. | Void |
| B. | Voidable |
| C. | Enforceable |
| D. | None of the above |
| Answer» C. Enforceable | |
| 117. |
Communication of acceptance is not necessary |
| A. | by performance of conditions of the offer by offeree. |
| B. | by acceptance of consideration by the offeree. |
| C. | by acceptance of benefit/service by the offeree. |
| D. | All of the above |
| Answer» E. | |
| 118. |
The Negotiable Instruments Act 1881 came into force on |
| A. | 9th December 1881, |
| B. | 19th December, 1881 |
| C. | 1st March, 1882 |
| D. | None of the above |
| Answer» D. None of the above | |
| 119. |
Unlawful agreements comprise |
| A. | Illegal agreements |
| B. | Immoral agreements only |
| C. | Agreements opposed to public policy only |
| D. | All the agreements mentioned above |
| Answer» E. | |
| 120. |
Mr. A delivers a basket of mango to Mr. B mistaking him to be Mr. C and Mr. B consumes those mangos. Hence |
| A. | Mr. B is bound to pay compensation to Mr. A for the value of Mango. |
| B. | Mr. B is not bound to pay any compensation as there was no agreement and it is ‘A’s fault. |
| C. | Mr. B is bound to pay compensation for value of mango and damages. |
| D. | None of the above |
| Answer» B. Mr. B is not bound to pay any compensation as there was no agreement and it is ‘A’s fault. | |
| 121. |
In case of contractual obligations where the promisor dies before performance, |
| A. | the legal representatives of the p romisor must perform the p romise irrespective of the promise. |
| B. | the legal representatives of the promisor must perform the promise provided it is not one dependent on the personal qualifications of the promisor. |
| C. | the legal representatives need not perform the promise. |
| D. | the legal representative is not liable to pay damages for non-performance of the promise. |
| Answer» C. the legal representatives need not perform the promise. | |
| 122. |
A purchases B’s business of selling neckties in Delhi. A can restrain B from |
| A. | doing the business of selling neckties again in his life. |
| B. | doing any business in Delhi. |
| C. | doing the business of selling neckties in Delhi for a limited peri |
| Answer» D. | |
| 123. |
Whether a stipulation is a condition or a warranty depends on |
| A. | the construction of the contract. |
| B. | the conduct of the parties. |
| C. | the trade custom. |
| D. | the local law. |
| Answer» B. the conduct of the parties. | |
| 124. |
Which of the following types of persons are not disqualified from contracting? |
| A. | Foreign Sovereigns |
| B. | Alien Enemy |
| C. | Convicts |
| D. | None of the above |
| Answer» E. | |
| 125. |
Law of Contract |
| A. | is the whole law of obligation |
| B. | is the whole law of agreements |
| C. | deals with only such legal obligation which arise from agreement. |
| D. | deals with social agreements. |
| Answer» D. deals with social agreements. | |
| 126. |
Where the s ale is n ot notified to be su bject to a right to bid on behalf of seller, and the Auctioneer knowingly takes any bid from the seller or any such person, the sale shall be treated as ____________ by the buyer. |
| A. | unlawful |
| B. | illegal |
| C. | immoral |
| D. | fraudulent |
| Answer» E. | |
| 127. |
If the performance of contract becomes impossible because the subject matter of contracthas ceased to exist then |
| A. | both the parties are liable |
| B. | neither party is liable |
| C. | only offeror is liable |
| D. | only acceptor is liable |
| Answer» C. only offeror is liable | |
| 128. |
Seller can raise the price by fictitious bids in an auction sale with the help of |
| A. | pretended bidding |
| B. | puffers |
| C. | agent |
| D. | broker |
| Answer» C. agent | |
| 129. |
Where the parties to a contract have agreed that a certain sum of money would be paid incase of breach of contract, the court will ensure that |
| A. | the exact amount mentioned in the contract is paid to the injured party. |
| B. | an amount not exceeding the stipulated amount is awarded. |
| C. | reasonable compensation not exceeding the amount stipulated is award |
| Answer» D. | |
| 130. |
A contract which ceases to be enforceable by law becomes |
| A. | Voidable contract. |
| B. | Void agreement. |
| C. | Void contract. |
| D. | Valid contract. |
| Answer» D. Valid contract. | |
| 131. |
In India, a person who is stranger to the consideration |
| A. | can sue on the contract, if he is a party. |
| B. | cannot sue the contract. |
| C. | depends on the parties. |
| D. | depends on the circumstances. |
| Answer» B. cannot sue the contract. | |
| 132. |
Cheque is a _______________ |
| A. | Promissory note |
| B. | Bill of exchange |
| C. | Both (A) and (B) |
| D. | None of the above |
| Answer» C. Both (A) and (B) | |
| 133. |
‘A’ threatened to commit suicide if his wife did not execute a sale deed in favour of hisbrother. The wife executed the sale deed. This transaction is |
| A. | voidable due to undue influence. |
| B. | voidable due to coercion. |
| C. | void being immoral |
| D. | void being forbidden by law. |
| Answer» C. void being immoral | |
| 134. |
Express offers and acceptances may be proved by the agreement between the parties but implied offers can be proved only by |
| A. | the words |
| B. | the conduct |
| C. | circumstantial evidence |
| D. | both (B) and (C) |
| Answer» E. | |
| 135. |
The term ‘Unpaid Seller’ includes |
| A. | Buyer’s agent to whom the Bill of Lading is endorsed. |
| B. | Buyer’s agent to whom the goods have been delivered. |
| C. | Seller’s agent to whom the Bill of Lading is endors |
| Answer» D. | |
| 136. |
Property in the goods in the Sale of Goods Act, 1930 means |
| A. | Ownership of goods |
| B. | Possession of goods |
| C. | Asset in the goods |
| D. | Custody of goods |
| Answer» B. Possession of goods | |
| 137. |
A telephonic acceptance is complete when the offer is |
| A. | spoken into the telephone. |
| B. | heard but not understood by the offeror. |
| C. | heard and understood by the offeror. |
| D. | received, heard and understood by some person in the offeror’s house. |
| Answer» D. received, heard and understood by some person in the offeror’s house. | |
| 138. |
A contract stands discharged |
| A. | by performance of the contract. |
| B. | by breach of the contract |
| C. | by agreement and novation |
| D. | all of the above |
| Answer» E. | |
| 139. |
The doctrine of Caveat emptor is not applicable |
| A. | in case of sale under a patent name. |
| B. | in case of sale under a trade name. |
| C. | where the seller is guilty of fraud |
| D. | where the buyer relies on the skill and judgement of the seller. |
| Answer» D. where the buyer relies on the skill and judgement of the seller. | |
| 140. |
An agreement to sell is |
| A. | an executory contract. |
| B. | an executed contract. |
| C. | Neither (A) or (B) |
| D. | Sometime (A) or (B) |
| Answer» B. an executed contract. | |
| 141. |
An agreement without consideration is void under |
| A. | Sec. 25(1) of the Contract Act |
| B. | Sec. 25 (3) of the Contract Act |
| C. | Sec. 25 (2) of the Contract Act |
| D. | None of the above clauses in Sec. 25 |
| Answer» E. | |
| 142. |
A minor can be appointed as agent. |
| A. | False |
| B. | Valid |
| C. | Voidable |
| D. | Not valid |
| Answer» C. Voidable | |
| 143. |
The exceptions to the rule A stranger to a contract cannot sue are |
| A. | Beneficiaries in the case of trust. |
| B. | Family settlement. |
| C. | Assignment of contract. |
| D. | All of the above |
| Answer» E. | |
| 144. |
If a minor draws, endorses, delivers or negotiates an instrument, such instrument binds |
| A. | all parties to the instrument including the minor. |
| B. | only the minor and not other parties to the instrument. |
| C. | all parties to the instrument except the minor. |
| D. | None of the above |
| Answer» D. None of the above | |
| 145. |
Unpaid seller can exercise his right of withholding delivery of goods |
| A. | even when property in goods has passed to the buyer |
| B. | only when property in goods has not passed to the buyer |
| C. | either (A) or (B) |
| D. | neither (A) nor (B) |
| Answer» B. only when property in goods has not passed to the buyer | |
| 146. |
According to Indian Contract Act, a promise is |
| A. | a communication of intention to do something. |
| B. | a proposal which has been accepted. |
| C. | a gentleman’s word to do something. |
| D. | a statement on oath. |
| Answer» C. a gentleman’s word to do something. | |
| 147. |
A contract to trade with an enemy is |
| A. | an immoral agreement. |
| B. | a valid agreement. |
| C. | an agreement opposed to public policy. |
| D. | an enforceable agreement. |
| Answer» D. an enforceable agreement. | |
| 148. |
A valid contract of sale |
| A. | includes ‘an agreement to sell’ |
| B. | does not include ‘an agreement to sell’ |
| C. | includes hire purchase contract |
| D. | includes contract for work and labour |
| Answer» B. does not include ‘an agreement to sell’ | |
| 149. |
Which of the following statements is true in connection with the contingent contract? |
| A. | The collateral event is contingent |
| B. | The collateral event may be certain or uncertain |
| C. | The contingency even may be the mere will of the promisor. |
| D. | The main event should be contingent. |
| Answer» B. The collateral event may be certain or uncertain | |
| 150. |
Right of Stoppage in transit can be exercised by the Unpaid Seller, where he |
| A. | has lost his right of lien |
| B. | still enjoys his right of lien |
| C. | either (a) or (b) |
| D. | neither (a) nor (b) |
| Answer» C. either (a) or (b) | |