140+ Fundamentals of Law Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) , Common Law Admission Test (CLAT) .

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51.	Right in rem implies:
A.	A right available against the whole world
B.	A right available against a particular individual
C.	A right available against the Government
D.	None of the above
Answer» A. A right available against the whole world

52.	‘Goods’ as defined in Sale of Goods Act will include
A.	rare coins, goodwill and money.
B.	growing crops agreed to be severed before sale, old coins and copyrights.
C.	goodwill, copyright, patent and foreign currency.
D.	Both (B) and (C)
Answer» B. growing crops agreed to be severed before sale, old coins and copyrights.

53.	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» D. All of the above

54.	Merchantable quality of goods means
A.	that the goods are commercially saleable.
B.	they are fit for the purpose for which they are generally used.
C.	Both (A) and (B)
D.	the quality should be of high standard.
Answer» C. Both (A) and (B)

55.	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» B. a proposal which has been accepted.

56.	Contracts contingent upon the non-happening of the future uncertain event becomes void when such event:
A.	Happen
B.	Does not happen
C.	The event becomes impossible
D.	None of the above
Answer» A. Happen

57.	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» C. heard and understood by the offeror.

58.	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» C. all parties to the instrument except the minor.

59.	What can a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as?
A.	An offer
B.	An obligation to sell book
C.	An invitation to offer
D.	A promise to make available the books at the listed
Answer» C. An invitation to offer

60.	Which of the statement is incorrect in connection with duties of seller and buyer?
A.	It is the duty of the seller to deliver the goods.
B.	It is the duty of the buyer to accept and pay for them.
C.	It is not the duty of the seller to deliver the goods.
D.	It is the duty of the buyer to take delivery of goods.
Answer» C. It is not the duty of the seller to deliver the goods.

61.	The inadequacy of consideration may be taken into account by the court
A.	in determining the question whether the consent of the promisor was freely given.
B.	always in all cases.
C.	when the parties complain.
D.	when the promisor has not performed his promise.
Answer» A. in determining the question whether the consent of the promisor was freely given.

63.	Where consideration is illegal or physically impossible, uncertain or ambiguous, it shall not be
A.	transferable by law.
B.	unenforceable by law.
C.	enforceable by law.
D.	None of the above
Answer» C. enforceable by law.

64.	There are __________________ modes of delivery.
A.	three
B.	two
C.	four
D.	five
Answer» A. three

65.	The principle of Estoppel cannot be applied against a minor since
A.	he has no sound mind.
B.	he has no privilege to cheat persons by making any representation.
C.	he may be induced by dishonest traders to declare in writing that he is a major at the time of entering into a contract.
D.	he has not attained the age of maturity.
Answer» D. he has not attained the age of maturity.

66.	The term “ a cheque in the ele ctronic form” is defined in the Negotiable Instruments Act, 1881-under
A.	Section 6(a)
B.	Section 6(1)(a)
C.	Explanation 1(a) of Section 6
D.	Section 6A
Answer» C. Explanation 1(a) of Section 6

62.	A finder of goods can sell the goods if
A.	the goods are ascertained.
B.	the goods are un-ascertained.
C.	the goods are valuable.
D.	the goods are perishable.
Answer» D. the goods are perishable.

67.	Lending money to a borrower, at h igh rate of interest, when the mo ney market is tig ht renders the agreement of loan:
A.	Void
B.	Valid
C.	Voidable
D.	Illegal
Answer» B. Valid

68.	Where by the co ntract, a promisor is to perfor m his prom ise without application by the promise and no time for performance is specified, the engagement must be performed within a reasonable time. The question “What i s a reasonable time” is in e ach particular case is
A.	a question of fact
B.	a question of law
C.	a question of general custom
D.	All of the above
Answer» D. All of the above

69.	Unlawful agreements comprise
A.	Illegal agreements
B.	Immoral agreements only
C.	Agreements opposed to public policy only
D.	All the agreements mentioned above
Answer» D. All the agreements mentioned above

70.	In an auction sale, the property shall be sold to be
A.	Lowest bidder
B.	Highest bidder
C.	Any bidder
D.	All bidders
Answer» B. Highest bidder

71.	A and B agree that A shall pay ₹1000 for which B shall afterwards deliver to either rice or smuggled opium. In this case
A.	the first agreement is void and the second voidable.
B.	the first is voidable and the second is void.
C.	the first is valid and the second is vo
Answer» C. the first is valid and the second is vo

72.	When an Instrument is drawn conditionally or for a special purpose as a collateral security and not for the purpose of transferring property therein, it is called an
A.	Escrow Instrument
B.	Inchoate Instrument
C.	Ambigous Instrument
D.	None of the above
Answer» A. Escrow Instrument

73.	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» C. doing the business of selling neckties in Delhi for a limited peri

74.	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» B. the legal representatives of the promisor must perform the promise provided it is not one dependent on the personal qualifications of the promisor.

75.	A borrows from B ₹500 to bet with C. Can B recover the amount of his loan?
A.	Yes, the agreement between them is collateral to a wagering agreement and hence enforceable.
B.	No, the agreement is opposed to public policy.
C.	No, the agreement is a voidable agreement and can be avoided by A.
D.	No, the agreement falls under section 23 and hence illegal.
Answer» D. No, the agreement falls under section 23 and hence illegal.

140+ Fundamentals of Law Solved MCQs

Right in rem implies:

‘Goods’ as defined in Sale of Goods Act will include

Communication of acceptance is not necessary

Merchantable quality of goods means

According to Indian Contract Act, a promise is

Contracts contingent upon the non-happening of the future uncertain event becomes void when such event:

A telephonic acceptance is complete when the offer is

If a minor draws, endorses, delivers or negotiates an instrument, such instrument binds

What can a catalogue of books, listing price of each book and specifying the place where the listed books are available be termed as?

Which of the statement is incorrect in connection with duties of seller and buyer?

The inadequacy of consideration may be taken into account by the court

A finder of goods can sell the goods if

Where consideration is illegal or physically impossible, uncertain or ambiguous, it shall not be

There are __________________ modes of delivery.

The principle of Estoppel cannot be applied against a minor since

The term “ a cheque in the ele ctronic form” is defined in the Negotiable Instruments Act, 1881-under

Lending money to a borrower, at h igh rate of interest, when the mo ney market is tig ht renders the agreement of loan:

Where by the co ntract, a promisor is to perfor m his prom ise without application by the promise and no time for performance is specified, the engagement must be performed within a reasonable time. The question “What i s a reasonable time” is in e ach particular case is

Unlawful agreements comprise

In an auction sale, the property shall be sold to be

A and B agree that A shall pay ₹1000 for which B shall afterwards deliver to either rice or smuggled opium. In this case

When an Instrument is drawn conditionally or for a special purpose as a collateral security and not for the purpose of transferring property therein, it is called an

A purchases B’s business of selling neckties in Delhi. A can restrain B from

In case of contractual obligations where the promisor dies before performance,

A borrows from B ₹500 to bet with C. Can B recover the amount of his loan?

Asim unlawfully detains Anil to obtain his va cant flat at Safdarjang enclave (valuing 50,00,000) at 40,00,000. This is a case of

A contract which ceases to be enforceable by law becomes

Mr. A promises to Mr. B without any intention of performing it. This is a case of

An advertisement for sale of goods by auction. This is a case of

An offer comes to an end by

A stranger to a contract can file

Of the following who is competent to enter into a contract?

A minor can be appointed as agent.

Mr. A delivers a basket of mango to Mr. B mistaking him to be Mr. C and Mr. B consumes those mangos. Hence

Agreement of which the consideration is inadequate is

Mr. A promises in writing to pay time barred debt to Mr. B. This is

When both the parties to an agreement are under a mistake as to matter of fact essential to an agreement, the agreement is

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

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

An auction sale is complete on the

Seller can raise the price by fictitious bids in an auction sale with the help of

Mr. A obtained mobile set from Mr. B by fraud. Mr. A has a voidable title at the option of Mr. B. Before Mr. B could rescind the contract, Mr. A sold the same to Mr. C who purchased from Mr. A in good faith and without knowledge of fraud by Mr. A and paid for it. In this case.

Delivery of goods means

For a valid contract of sale, delivery may be

Every instrument payable otherwise than on demand is entitled to_____days of grace period

Inchoate instrument is

Which of the following is not a Negotiable Instrument as per the Negotiable Instrument Act, 1881?

How many parties are involved in a bill of exchange?

A void agreement is one

A contract is formed when the acceptor

76.	Asim unlawfully detains Anil to obtain his va cant flat at Safdarjang enclave (valuing 50,00,000) at 40,00,000. This is a case of
A.	Undue influence
B.	Coercion
C.	Fraud
D.	By Force
Answer» B. Coercion

77.	A contract which ceases to be enforceable by law becomes
A.	Voidable contract.
B.	Void agreement.
C.	Void contract.
D.	Valid contract.
Answer» C. Void contract.

78.	Mr. A promises to Mr. B without any intention of performing it. This is a case of
A.	Cheating
B.	Fraud
C.	Valid case
D.	None of the above
Answer» B. Fraud

79.	An advertisement for sale of goods by auction. This is a case of
A.	General offer
B.	An offer to hold such sale
C.	An invitation to offer
D.	Implied offer
Answer» A. General offer

80.	An offer comes to an end by
A.	Revocation
B.	Acceptance
C.	Communication
D.	None of the above
Answer» A. Revocation

81.	A stranger to a contract can file
A.	A suit
B.	A suit only with the permission of court
C.	A suit if Contract is in writing
D.	Cannot file a suit
Answer» D. Cannot file a suit

82.	Of the following who is competent to enter into a contract?
A.	Minor
B.	Unsound mind
C.	Lunatic
D.	Sound mind
Answer» D. Sound mind

83.	A minor can be appointed as agent.
A.	False
B.	Valid
C.	Voidable
D.	Not valid
Answer» B. Valid

84.	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» A. Mr. B is bound to pay compensation to Mr. A for the value of Mango.

86.	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» B. Enforceable