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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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
Answer» B. is valid in the beginning but becomes void later on.

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)
Answer» 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
Answer» A. when the letter of acceptance is posted by the acceptor.

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)
Answer» A. Essential to the main purpose of the contract.

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.
Answer» 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
Answer» A. Ownership

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.
Answer» B. Offer, acceptance, consideration, 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
Answer» 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
Answer» B. Symbolic delivery

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
Answer» B. Not Consideration

11.	Is a pronote executed in favour of a minor good in law?
A.	Yes
B.	No
C.	Not in normal cases
D.	Depends
Answer» A. Yes

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
Answer» B. becomes insolvent

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.
Answer» B. voidable due to coercion.

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.
Answer» D. illegal agreements are always void.

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 i gnorance 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
Answer» C. Voidable at the option of A

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
Answer» C. voidable at the option of the buyer

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.
Answer» 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
Answer» B. before its maturity

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.
Answer» 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
Answer» C. His property

21.	Cheque is a _______________
A.	Promissory note
B.	Bill of exchange
C.	Both (A) and (B)
D.	None of the above
Answer» B. Bill of exchange

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
Answer» 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
Answer» A. at which it falls due

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
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» C. reasonable compensation not exceeding the amount stipulated is award

25.	___________ days grace period is allowed for payment of a Cheque.
A.	0
B.	3
C.	2
D.	7
Answer» B. 3

140+ Fundamentals of Law Solved MCQs

A void contract

Which one of the following does not connote ‘goods’ as defined in the Sale of Goods Act?

Acceptance takes place as against the proposer.

Conditions are stipulations

Which of the following is an offer?

The general rule of Sale of Goods Act, is risk prima facie passes with

Which one of the following has the correct sequence?

The exceptions to the rule A stranger to a contract cannot sue are

Delivery of the keys of a godown where goods are kept amounts to

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:

Is a pronote executed in favour of a minor good in law?

Right of stoppage in transit can be exercised by the Unpaid Seller, where the Buyer:

‘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

Which one of the following statements is correct?

In pretended bidding, sale is

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 i gnorance B is enabled to buy the estate at a low price. The contract is:

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?

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:

Which of the following statement is false in connection with the contingent contract?

Who is liable for necessaries supplied to a minor?

Cheque is a _______________

A contract stands discharged

The maturity of a promissory note or bill of exchange is the date

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

___________ days grace period is allowed for payment of a Cheque.

A foreigner

An agreement to sell is

Cross offer does not constitute a contract because

Whether a stipulation is a condition or a warranty depends on

The communication of an acceptance is complete as against the acceptor

In a Book depot a catalogue of book enlisting the price of each book and specifying the place where the particular book is available is

Voluntary transfer of possession from one person to another is called as

A valid consideration includes,

The term ‘Unpaid Seller’ includes

In India, a person who is stranger to the consideration

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—

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

“Threatening to commit certain acts forbidden by Indi an Penal Code” is asso ciated with which one of the following?

A contract to trade with an enemy is

________________ is a form of comb ination of buyers to prevent competition among themselves at an auction sale.

A, while filling up the insurance application form, states his age as 25 believing it to be true. His actual age was 27. The Life Insurance Corporation issued a policy in his favour charging a lower premium than what it should have charged if the actual age had been given. This is a case of

In a promissory note, the amount of money payable

R entered into a contract with L to marry her on a fixed date. However, before the marriage date, R went mad. With reference to the Indian Contract Act which is the valid response?

The undertaking contained in a promissory note, to pay a certain sum of money is

A makes a contract with B to buy his house for ₹50,000 if he is able to secure to bank loan for that amount. The contract is

Ordinary damages will be awarded in cases where

Which of the following statement is true in connection with Quasi-contract?

A cheque is always payable on

Each party to a contract is bound to perform his part of the obligation. After the parties have made due performance, the contract comes to an end. In such a case the contract is said to be discharged

26.	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» A. is competent to enter into contract if he fulfills the conditions of section 11.

27.	An agreement to sell is
A.	an executory contract.
B.	an executed contract.
C.	Neither (A) or (B)
D.	Sometime (A) or (B)
Answer» A. an executory contract.

28.	Cross offer does not constitute a contract because
A.	there is no acceptance.
B.	there is implied acceptance.
C.	crossing implies cancellation.
D.	it amounts to counter offer.
Answer» A. there is no acceptance.

29.	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» A. the construction of the contract.

30.	The communication of an acceptance is complete as against the acceptor
A.	when it is posted by him.
B.	when it is put in the course of transmission.
C.	when it comes to the knowledge of the proposer.
D.	None of the above
Answer» C. when it comes to the knowledge of the proposer.

31.	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

32.	In a Book depot a catalogue of book enlisting the price of each book and specifying the place where the particular book is available is
A.	an invitation to offer.
B.	an offer.
C.	an invitation to visit the book shop.
D.	None of the above
Answer» C. an invitation to visit the book shop.

34.	A valid consideration includes,
A.	executed or executory consideration.
B.	past consideration.
C.	inadequate consideration.
D.	All of the above
Answer» D. All of the above

35.	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» C. Seller’s agent to whom the Bill of Lading is endors

36.	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» A. can sue on the contract, if he is a party.