Paper – 6
Laws & Ethics
,1. A void contract
(A) is void from the very beginning.
(B) is valid in the beginning but becomes void later on.
(C) is enforceable at the option of one of the contracting parties only.
(D) none of the above
2. Which one of the following does not connote ‗goods‘ as defined in the Sale of Goods Act?
(A) Money
(B) Animals
(C) Debt
(D) Both (A) and (C)
3. Acceptance takes place as against the proposer.
(A) when the letter of acceptance is posted by the acceptor.
(B) when the letter of acceptance is received by the proposer.
(C) when the offeree, writes the letter of acceptance, but doesn‘t post it.
(D) All of the above
4. Conditions are stipulations
(A) Essential to the main purpose of the contract.
(B) collateral to the main purpose of the contract.
(C) Either (A) or (B)
(D) Neither (A) nor (B)
5. Which of the following is an offer?
(A) The mere quotation of terms by trader.
(B) The quotation of the lowest price in answer to enquiry.
(C) Advertisement for sale or auction of goods.
(D) Bids in an auction sale.
6. The general rule of Sale of Goods Act, is risk prima facie passes with
(A) Ownership
(B) Possession
(C) Delivery
(D) Custody
7. Which one of the following has the correct sequence?
(A) Offer, acceptance, contract, consideration.
(B) Offer, acceptance, consideration, contract
(C) Contract, acceptance, consideration, offer
(D) Offer, consideration, acceptance, contract.
8. 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
,9. Delivery of the keys of a godown where goods are kept amounts to
(A) Actual delivery
(B) Symbolic delivery
(C) Constructive delivery
(D) All of the above
10. In Indian Law consideration must have been done at the desire of the promisor, if it is
done at the instance of a third party or without the desire of the promisor, it is:
(A) Consideration
(B) Not Consideration
(C) Offer
(D) Promise
11. Is a promissory note executed in favour of a minor good in law?
(A) Yes
(B) No
(C) Not in normal cases
(D) Depends
12. Right of stoppage in transit can be exercised by the Unpaid Seller, where the Buyer:
(A) is solvent
(B) becomes insolvent
(C) acts fraudulently
(D) acts smartly
13. ‗A‘ threatened to commit suicide if his wife did not execute a sale deed in favour of his
brother. 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.
14. Which one of the following statements is correct?
(A) void agreements are always illegal.
(B) illegal agreements are voidable.
(C) illegal agreements can be ratified by the parties.
(D) illegal agreements are always void.
15. In pretended bidding, sale is
(A) voidable at the option of the seller.
(B) valid
(C) voidable at the option of the buyer
(D) illegal
16. B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does
conceal, the existence of the ore from A. Owing to A‘s ignorance B is enabled to buy the
estate at a low price. The contract is:
(A) Valid
(B) Void
, (C) Voidable at the option of A
(D) Invalid
17. A paid ` 500 to a Government servant to get him a contract for the canteen. The
Government servant could not get the contract. Can A recover ` 500 paid by him to the
Government servant?
(A) Yes, the agreement between them is valid and enforceable.
(B) Yes, the agreement is not opposed to public policy.
(C) No, the agreement is a voidable agreement and can be avoided by A.
(D) No, the agreement is void.
18. Under Section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the
contrary is proved, that every transfer of a negotiable instrument was made:
(A) after its maturity
(B) before its maturity
(C) at its maturity
(D) none of the above
19. Which of the following statement is false in connection with the contingent contract?
(A) The event must be collateral.
(B) The event must be uncertain
(C) The event should not be mere will of the promisor.
(D) none of the above.
20. Who is liable for necessaries supplied to a minor?
(A) The guardian of the minor
(B) The minor
(C) His property
(D) None of the above
21. Cheque is a _______________
(A) Promissory note
(B) Bill of exchange
(C) Both (A) and (B)
(D) None of the above
22. 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
23. The maturity of a promissory note or bill of exchange is the date
(A) at which it falls due
(B) of its presentation
(C) of its acceptance
(D) none of the above
24. Where the parties to a contract have agreed that a certain sum of money would be paid in
case of breach of contract, the court will ensure that
Laws & Ethics
,1. A void contract
(A) is void from the very beginning.
(B) is valid in the beginning but becomes void later on.
(C) is enforceable at the option of one of the contracting parties only.
(D) none of the above
2. Which one of the following does not connote ‗goods‘ as defined in the Sale of Goods Act?
(A) Money
(B) Animals
(C) Debt
(D) Both (A) and (C)
3. Acceptance takes place as against the proposer.
(A) when the letter of acceptance is posted by the acceptor.
(B) when the letter of acceptance is received by the proposer.
(C) when the offeree, writes the letter of acceptance, but doesn‘t post it.
(D) All of the above
4. Conditions are stipulations
(A) Essential to the main purpose of the contract.
(B) collateral to the main purpose of the contract.
(C) Either (A) or (B)
(D) Neither (A) nor (B)
5. Which of the following is an offer?
(A) The mere quotation of terms by trader.
(B) The quotation of the lowest price in answer to enquiry.
(C) Advertisement for sale or auction of goods.
(D) Bids in an auction sale.
6. The general rule of Sale of Goods Act, is risk prima facie passes with
(A) Ownership
(B) Possession
(C) Delivery
(D) Custody
7. Which one of the following has the correct sequence?
(A) Offer, acceptance, contract, consideration.
(B) Offer, acceptance, consideration, contract
(C) Contract, acceptance, consideration, offer
(D) Offer, consideration, acceptance, contract.
8. 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
,9. Delivery of the keys of a godown where goods are kept amounts to
(A) Actual delivery
(B) Symbolic delivery
(C) Constructive delivery
(D) All of the above
10. In Indian Law consideration must have been done at the desire of the promisor, if it is
done at the instance of a third party or without the desire of the promisor, it is:
(A) Consideration
(B) Not Consideration
(C) Offer
(D) Promise
11. Is a promissory note executed in favour of a minor good in law?
(A) Yes
(B) No
(C) Not in normal cases
(D) Depends
12. Right of stoppage in transit can be exercised by the Unpaid Seller, where the Buyer:
(A) is solvent
(B) becomes insolvent
(C) acts fraudulently
(D) acts smartly
13. ‗A‘ threatened to commit suicide if his wife did not execute a sale deed in favour of his
brother. 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.
14. Which one of the following statements is correct?
(A) void agreements are always illegal.
(B) illegal agreements are voidable.
(C) illegal agreements can be ratified by the parties.
(D) illegal agreements are always void.
15. In pretended bidding, sale is
(A) voidable at the option of the seller.
(B) valid
(C) voidable at the option of the buyer
(D) illegal
16. B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does
conceal, the existence of the ore from A. Owing to A‘s ignorance B is enabled to buy the
estate at a low price. The contract is:
(A) Valid
(B) Void
, (C) Voidable at the option of A
(D) Invalid
17. A paid ` 500 to a Government servant to get him a contract for the canteen. The
Government servant could not get the contract. Can A recover ` 500 paid by him to the
Government servant?
(A) Yes, the agreement between them is valid and enforceable.
(B) Yes, the agreement is not opposed to public policy.
(C) No, the agreement is a voidable agreement and can be avoided by A.
(D) No, the agreement is void.
18. Under Section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the
contrary is proved, that every transfer of a negotiable instrument was made:
(A) after its maturity
(B) before its maturity
(C) at its maturity
(D) none of the above
19. Which of the following statement is false in connection with the contingent contract?
(A) The event must be collateral.
(B) The event must be uncertain
(C) The event should not be mere will of the promisor.
(D) none of the above.
20. Who is liable for necessaries supplied to a minor?
(A) The guardian of the minor
(B) The minor
(C) His property
(D) None of the above
21. Cheque is a _______________
(A) Promissory note
(B) Bill of exchange
(C) Both (A) and (B)
(D) None of the above
22. 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
23. The maturity of a promissory note or bill of exchange is the date
(A) at which it falls due
(B) of its presentation
(C) of its acceptance
(D) none of the above
24. Where the parties to a contract have agreed that a certain sum of money would be paid in
case of breach of contract, the court will ensure that
