1. An agreement enforceable by law is a
(a) Promise (b) Contract
(c) Obligation (d) Lawful promise
2. A void agreement is one which is -
(a) Valid but not enforceable (b) Enforceable at the option of both the parties
(c) Enforceable at the option of one party (d) Not enforceable in a court of law.
3. An agreement which is enforceable by law at the option of one or more of the parties thereon but not at
the option of the other or others is a
(a) Valid Contract (b) Void contract
(c) Voidable contract (d) Illegal contract
4. When the consent of a party is not free, the contract is
(a) Void (b) Voidable
(c) Valid (d) Illegal
5. In case of illegal agreements, the collateral agreements are:
(a) Valid (b) Void
(c) Voidable (d) None of these
6. An offer may lapse by:
(a) Revocation (b) Counter Offer
(c) Rejection of offer by offeree (d) All of these
7. A proposal when accepted becomes a
(a) Promise (b) Contract
(c) Offer (d) Acceptance
8. If A says to B “I offer to sell my house to you for ` 10,00,000” and B accepts the offer by saying clearly
“I accept your offer”, it is a/an
(a) Implied offer (b) Express offer
(c) General offer (d) None of the above
9. ‘A’ offered a reward of ` 10,000 for recovery of some valuable missing articles. ‘B’ who did not know of
this offer, found the missing articles. Which one of the following is the correct solution to this problem?
(a) Giving delivery of articles to ‘A’ amounts to an acceptance and hence ‘B’ is entitled to get the
reward of ` 10,000
(b) Giving delivery of articles to ‘A’ amounts to performance of a condition precedent to an offer
and hence there is valid acceptance. So ‘B’ must get the reward of ` 10,000
(c) As there is no acceptance of an offer due to want of Knowledge, ‘B’, is not entitled to get the
reward of ` 10,000
(d) In the absence of any legal obligation on ‘A’, no claim for reward of ` 10,000 is maintainable by
‘B’.
10. Arun has two cars- one of white colour and another of red colour. He offers to sell one of the cars to
Basu thinking that he is selling the car which has white colour. Basu agrees to buy the car thinking that
Arun is selling the car which has red colour. Will this agreement becomes a valid contract?
(a) Yes (b) No
(c) Insufficient information (d) None of the above.
11. A dress is displayed in the showroom with a price tag attached to the dress. A buyer interested in the
dress and ready to pay the price mentioned in the tag approached the shopkeeper for purchasing the
dress.
(a) The shopkeeper can refuse to sell the dress as display of dress is just an invitation to offer.
(b) The shopkeeper cannot refuse to sell the dress as the buyer has accepted the offer
(c) In case of refusal, the shopkeeper will be liable for breach of contract
(d) The shopkeeper cannot refuse to sell the dress but may charge higher price
12. A agrees to pay ` 1,000 to B 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
13. A notice in the newspaper inviting tenders is
(a) a proposal (b) An invitation to proposal
(c) A promise (d) An invitation for negotiation
14. 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) is received, heard and understood by some person in the offeror’s house
15. A and B agree to deal in smuggled goods and share the profits. A refuses to give B’s share of profit. In
this case:
(a) B can enforce the agreement in the court
(b) B can only claim damages
(c) B has no remedy as the contract is illegal
(d) B can enforce the contract and claim damages
16. Which one of the following statements is correct?
(a) Void agreements are always illegal
(b) Illegal agreements are voidable
(c) Illegal agreement can be ratified by the parties
(d) Illegal agreements are always void
17. A voidable contract is one which
(a) Can be enforced at the option of aggrieved party
(b) Can be enforced at the option of both the parties
(c) Cannot be enforced in a court of law
(d) Courts prohibit
18. When offer is made to a definite person, it is known as
(a) General Offer (b) Cross Offer
(c) Counter offer (d) Special offer
19. On the face of a ticket, it is mentioned that to look for the terms and conditions look behind. Mr. A bought
the ticket but didn’t read the terms and conditions. He:
(a) is not bound by the terms and condition
(b) may decide to bound by certain terms and ignore others
(c) is bound by all the terms and conditions whether he read it or not
(d) none of the above
Answers to MCQs
1. (b) 2. (d) 3. (c) 4. (b) 5. (b)
6. (d) 7. (a) 8. (b) 9. (c) 10. (b)
11. (a) 12. (b) 13. (b) 14. (c) 15. (c)
16. (d) 17. (a) 18. (d) 19. (c)