McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 351. |
Which of the following statement is true in connection with Quasi-contract. |
| A. | It is imposed by law |
| B. | A Quasi-contract is a revoking contract |
| C. | Damages cannot be claimed for breach of Quasi-contractual right. |
| D. | It arises out of an agreement |
| Answer» A. It is imposed by law | |
| 352. |
Which of the following statements regarding Quasi-contracts is incorrect |
| A. | It resembles a contract |
| B. | It is imposed by law |
| C. | It is based on the doctrine of unjust enrichment |
| D. | It is voluntarily created |
| Answer» D. It is voluntarily created | |
| 353. |
Which of the following transactions cannot be described as Quasi-contracts |
| A. | Claims of necessaries supplied to incompetent person |
| B. | Right to recover money paid for another person |
| C. | Right to claim money if given under coercion or mistake |
| D. | Right to claim money if given under fraud or misrepresentation |
| Answer» D. Right to claim money if given under fraud or misrepresentation | |
| 354. |
Quasi-contracts are: |
| A. | not contracts in the real sense of the word |
| B. | relations which create certain obligations resembling those created by a contract |
| C. | implied contracts |
| D. | unenforceable contracts |
| Answer» B. relations which create certain obligations resembling those created by a contract | |
| 355. |
A finder 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 | |
| 356. |
Mr. Kamal was levied Sales Tax on his forward transactions in bullion, which he paid. The levy of this tax was declared ultra vires. Mr. Kamal demanded refund on the amount of Sales Tax on the ground that payment was under a mistake of law. Which of the following is correct? |
| A. | Mr. Kamal will not succeed as once the payment is made to government it cannot be refunded |
| B. | Mr. Kamal will not succeed as his forward transaction of bullion attracted sales tax at that time |
| C. | Mr. Kamal will succeed |
| D. | Mr. Kamal will not succeed as mistake of law is not good defence |
| Answer» C. Mr. Kamal will succeed | |
| 357. |
An insurance company paid money by mistake on a policy which had lapsed. Though the company was not ignorant of the fact of the lapse, this was overlooked at the time of payment. Can the company recover the amount? |
| A. | The company cannot recover the amount |
| B. | The company can recover the amount |
| C. | The company once paid the money is estopped to demand back by virtue of 'Doctrine of Estoppel' |
| D. | The company can revive the lapsed policy and thus regularize the payment |
| Answer» B. The company can recover the amount | |
| 358. |
Where a party to a contract fails to perform at or before a specified time and it was the intention of the parties that time should be of the essence |
| A. | The contract becomes voidable |
| B. | The contract does not become voidable but the aggrieved party is entitled to compensation |
| C. | The contract becomes void |
| D. | None of these |
| Answer» A. The contract becomes voidable | |
| 359. |
Contracts which need not be performed are spelt out in |
| A. | Sees. 60-65 of the Contract Act |
| B. | Sees. 61-66 of the Contract Act |
| C. | Sees. 62-67 of the Contract Act |
| D. | Sees. 68-70 of the Contract Act |
| Answer» C. Sees. 62-67 of the Contract Act | |
| 360. |
Reciprocal promises include |
| A. | Mutual and independent promises |
| B. | Mutual and dependent promises |
| C. | Mutual and concurrent promises |
| D. | All of these |
| Answer» D. All of these | |
| 361. |
A contracts with B to construct a building for a fixed price, B supplying the necessary timber. This reciprocal promise is |
| A. | Mutual and Independent |
| B. | Mutual and Dependent |
| C. | Mutual and Concurrent |
| D. | None of the above |
| Answer» B. Mutual and Dependent | |
| 362. |
A contract of personal nature can be performed by |
| A. | The promisor, |
| B. | The agent, |
| C. | The legal representative, |
| D. | None of the above. |
| Answer» A. The promisor, | |
| 363. |
Liability of the joint promisor is |
| A. | Joint |
| B. | Several |
| C. | Joint and several |
| D. | None of the above |
| Answer» C. Joint and several | |
| 364. |
Where the order of performance is not fixed the contract will be performed as per |
| A. | The wish of the promisor |
| B. | The wish of the promise |
| C. | The wish of both the parties |
| D. | The nature of transactions |
| Answer» D. The nature of transactions | |
| 365. |
If neither the debtor nor the creditor appropriates the payment, the payment will be appropriated: |
| A. | As per the desire of the promisor, |
| B. | As per the desire of the promisee, |
| C. | In order of time, |
| D. | None of the above. |
| Answer» C. In order of time, | |
| 366. |
Agreement by way of wager are |
| A. | Valid and enforceable by law |
| B. | Void |
| C. | Voidable at the option of party |
| D. | Illegal |
| Answer» B. Void | |
| 367. |
An offer of performance is known as |
| A. | Offer |
| B. | Proposal |
| C. | Tender |
| D. | Acceptance |
| Answer» C. Tender | |
| 368. |
Which one of the following is correct about the essentials of a valid tender? |
| A. | The tender must be unconditional |
| B. | The tender must be made at proper time and place |
| C. | The promisee must be given an opportunity to ascertain that the goods are according to the contract |
| D. | All of the above are correct |
| Answer» D. All of the above are correct | |
| 369. |
A, B and C jointly promise to pay D ` 3,000. D may compel |
| A. | A, B and C jointly to pay him ` 3,000 |
| B. | A to pay him ` 3,000 |
| C. | A or B or C to pay him ` 3,000 |
| D. | A, B and C jointly and separately to pay ` 3,000 |
| Answer» D. A, B and C jointly and separately to pay ` 3,000 | |
| 370. |
A contract stands discharged : |
| A. | By performance of the contract |
| B. | By breach of the contract |
| C. | By agreement and novation |
| D. | All of these |
| Answer» D. All of these | |
| 371. |
Where by the contract, a promisor is to perform his promise without application by the promise and no time for performance is specified the engagement must be performed within a reasonable time. The question "What is a reason able time" is in each particular case is a : |
| A. | A question of fact |
| B. | A question of law |
| C. | A question of general custom |
| D. | All of these |
| Answer» D. All of these | |
| 372. |
When time is not the essence of contract: |
| A. | It is expected that the promisor would perform the contract within the time |
| B. | It must be performed within a reasonable time |
| C. | The promisor would perform the contract within the stipulated time |
| D. | None of these |
| Answer» B. It must be performed within a reasonable time | |
| 373. |
How many contracts are there in a contract of guarantee? |
| A. | Two contracts |
| B. | Three contracts |
| C. | Four contracts |
| D. | None of these |
| Answer» B. Three contracts | |
| 374. |
When a contract ceases to bind the parties to it, it is said to be : |
| A. | Discharged |
| B. | Performed |
| C. | Obliged |
| D. | None of these |
| Answer» A. Discharged | |
| 375. |
Each party to a contract is bound to perform his part of the obligation. After the parties have made due performance of the contract comes to an end. In such a case the contract is said to be discharged : |
| A. | By breach of contract |
| B. | By impossibility of performance |
| C. | By agreement and novation |
| D. | By performance of contract |
| Answer» D. By performance of contract | |
| 376. |
A, a singer enters into a contract with B, the manager of a theatre to sing at his theatre two nights in every week during the next two months and B engages to pay her `100 for each night's performance. On the sixth night, A willfully absents herself from the theatre. |
| A. | B is at liberty to put an end to the contract |
| B. | B cannot put an end to the contract |
| C. | The contract is left at the liberty of A |
| D. | None of these |
| Answer» A. B is at liberty to put an end to the contract | |
| 377. |
A and B contract to marry each other before the time fixed for the marriage. A goes mad. The contract becomes: |
| A. | Void |
| B. | Voidable |
| C. | Unenforceable |
| D. | None of these |
| Answer» A. Void | |
| 378. |
If a contract is based on personal skill or confidence of parties, the death of a party in such a case: |
| A. | Puts an end to the contract |
| B. | Does not put an end to the contract |
| C. | The representatives of the deceased can be made liable to perform such a contract |
| D. | None of these |
| Answer» A. Puts an end to the contract | |
| 379. |
When the performance of a contract becomes impossible, the purpose which the parties had in mind is frustrated. If the purpose becomes impossible because of supervening event, the promisor is excused from the performance of the contract. This is known as : |
| A. | The doctrine of frustration |
| B. | Initial impossibility |
| C. | Subsequent impossibility |
| D. | None of these |
| Answer» A. The doctrine of frustration | |
| 380. |
If a person accepts a lesser sum of money than what was contracted for in discharge of the whole debt, it is known as : |
| A. | Waiver |
| B. | Rescission |
| C. | Alteration |
| D. | Remission |
| Answer» D. Remission | |
| 381. |
Are rights under a contract assignable? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | Any of the above |
| Answer» A. Yes | |
| 382. |
Are rights under a contract assignable unless the contract is personal in its nature? |
| A. | Yes |
| B. | No |
| C. | Not in normal cases |
| D. | Depends |
| Answer» A. Yes | |
| 383. |
Is offer of performance discharge of obligation? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | Any of the above |
| Answer» A. Yes | |
| 384. |
A modification or revocation of the contract requires a ……… of each contracting party. |
| A. | Denial |
| B. | Consensus |
| C. | Modification |
| D. | Revocation |
| Answer» B. Consensus | |
| 385. |
Essence of ……. lies not in the dissimilarity of the terms between the two contracts but in the intention of the parties to supersede the old by the new. |
| A. | Acceptance |
| B. | Offer |
| C. | Novation |
| D. | Proposal |
| Answer» C. Novation | |
| 386. |
A change of nature of obligation of a contract is known as: |
| A. | Novation |
| B. | Rescission |
| C. | Alteration |
| D. | Repudiation |
| Answer» C. Alteration | |
| 387. |
In case of conflict of jurisdiction of the courts, the incidence of a contract shall be governed by the law of the place where the : |
| A. | Contract is made |
| B. | Contract is performed |
| C. | Acceptor resides |
| D. | Proposer resides |
| Answer» A. Contract is made | |
| 388. |
If the performance of contract becomes impossible because the subject matter of contract has ceased to exist then : |
| A. | Both the parties are liable |
| B. | Neither party is liable |
| C. | Only offerer is liable |
| D. | Only acceptor is liable |
| Answer» B. Neither party is liable | |
| 389. |
A, B and C jointly promise to pay ` 3,000 to X. In the absence of express agreement to the contrary, X can bring an action against: |
| A. | Any two of them only |
| B. | All of them together |
| C. | Any one of them, at this choice |
| D. | Either (b) or (c) |
| Answer» D. Either (b) or (c) | |
| 390. |
Which of the following is not a exception to the rule that the agreement in restraint of trade is void : |
| A. | A partner can be prevented for carrying on similar business |
| B. | An outgoing partner can be restraint on carrying similar business |
| C. | On dissolution of firm, partners may agree not to carry on similar business |
| D. | The seller of goodwill of business can be prevented for carrying any kind of business at any place |
| Answer» D. The seller of goodwill of business can be prevented for carrying any kind of business at any place | |
| 391. |
A doctor teaching in a medical college prevented from doing private practice, such a restriction is: |
| A. | Valid |
| B. | Partial lawful |
| C. | Unlawful |
| D. | Partial Unlawful |
| Answer» A. Valid | |
| 392. |
Agreement is restraint of trade is void. The restraint mentioned here is : |
| A. | Partial |
| B. | Total |
| C. | (a) & (b) |
| D. | None of these |
| Answer» C. (a) & (b) | |
| 393. |
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 the above |
| Answer» D. all the above | |
| 394. |
A contracts to sing for B for a consideration of ` 5,000 which amount is paid in advance. A becomes unwell and is not able to perform. B suffers a loss of ` 10,000. A is liable to pay B |
| A. | ` 15,000 |
| B. | ` 10,000 |
| C. | ` 5,000 |
| D. | Nothing |
| Answer» B. ` 10,000 | |
| 395. |
A contractor had to supply the army charpoys in certain quantities by instalments. He failed to supply the requisite number and even after that breach the instalment of charpoys was received by army authorities. Meanwhile, the work orders were however cancelled. The orders cancelling the work order were |
| A. | Valid |
| B. | Void |
| C. | Without authority |
| D. | Contractor could claim damages |
| Answer» B. Void | |
| 396. |
By a contract B agreed to take A's son in adoption and A to give B enjoyment of certain properties. A refused to give his son in adoption, he made the adoption impossible by performing the marriage of the boy. |
| A. | The contract is enforceable since A did not give his son in adoption |
| B. | B should be given the property as per the agreement |
| C. | As adoption was not complete, the contract is not enforceable |
| D. | A's action can be considered legitimate as a parent |
| Answer» C. As adoption was not complete, the contract is not enforceable | |
| 397. |
A promises to paint a picture for B by a certain day at a certain price. A dies before the promised day. Which one of the following is the correct legal position |
| A. | The agreement becomes unlawful |
| B. | The agreement lapses for both the parties |
| C. | The agreement becomes voidable at the option of A's legal representative |
| D. | None of these |
| Answer» B. The agreement lapses for both the parties | |
| 398. |
A promises to deliver goods at B's warehouse on the 1st January. On that day, A brings the goods to B's warehouse but after the usual hour for closing it and they are not received. Which one of the following is correct? |
| A. | A has not kept his promise |
| B. | A kept his promise as time was not specified |
| C. | A performs his duty as the time is not the essence of the contract |
| D. | All of these |
| Answer» A. A has not kept his promise | |
| 399. |
'A' promises to paint a picture for 'B' by a certain day at a certain price. 'A' dies before that day. In this situation, the contract |
| A. | Cannot be enforced as it becomes void due to personal incapacity |
| B. | Will be performed by the legal representative of 'A', who is bound by law to perform it |
| C. | Can be performed by an agent of 'A' |
| D. | Can be performed by a third person on behalf 'A' |
| Answer» A. Cannot be enforced as it becomes void due to personal incapacity | |
| 400. |
X, Y and Z are under a joint promise to pay ` 8,000 to W. Z is unable to pay anything and Y is compelled to pay the entire amount. What amount can Y successfully claim from X? |
| A. | Y can claim ` 8,000 from X by way of contribution |
| B. | Y can claim ` 4,000 from X by way of contribution |
| C. | Y can claim ` 6,000 from X by way of contribution |
| D. | Y cannot claim anything from X |
| Answer» B. Y can claim ` 4,000 from X by way of contribution | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.