McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 151. |
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 the 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 | |
| 152. |
Consideration in a contract: |
| A. | May be present only |
| B. | May be past and present only |
| C. | May be futuristic only |
| D. | May be past, present and future |
| Answer» D. May be past, present and future | |
| 153. |
An agreement not supported by consideration is called: |
| A. | Consensus ad idem |
| B. | Ignoratia juris non execuset |
| C. | Ab imits |
| D. | Nudum Pactum |
| Answer» D. Nudum Pactum | |
| 154. |
Which one of the following is the correct statement: |
| A. | Stranger to consideration contract sue |
| B. | Stranger to consideration can file a suit |
| C. | Stranger to consideration is stranger to contract |
| D. | Stranger to consideration cannot be party to the contract |
| Answer» B. Stranger to consideration can file a suit | |
| 155. |
Consider the following statements: Consideration is 1. A motive for any promise 2. A price for any promise 3. Only a moral obligation 4. Something of value in the eye of law Of these statements |
| A. | 1,2 and 3 are correct |
| B. | 1 and 4 are correct |
| C. | 2 and 4 are correct |
| D. | 3 alone is correct |
| Answer» C. 2 and 4 are correct | |
| 156. |
Past consideration means |
| A. | Money received in the past without making even a proposal |
| B. | The price which is more than the promisee's expectation |
| C. | A past act done before the promise is made |
| D. | None of the above |
| Answer» C. A past act done before the promise is made | |
| 157. |
An agreement without consideration is void except in case of compensation for |
| A. | Voluntary services rendered |
| B. | Voluntary services rendered at the request of the other party to the agreement |
| C. | Voluntary services rendered at the request of third person |
| D. | Reimbursement of expenses incurred |
| Answer» A. Voluntary services rendered | |
| 158. |
A contract without consideration is void. There are exceptions. Which one of the following exceptions is correct? |
| A. | Promise to pay disputed debt |
| B. | Promise to pay time-barred |
| C. | Promise to pay time-barred debt which is in writing and signed ; (d) |
| D. | Promise to pay any debt |
| Answer» C. Promise to pay time-barred debt which is in writing and signed ; (d) | |
| 159. |
Which one of the following statements is incorrect with regard to nature of a valid consideration? |
| A. | Consideration must be adequate |
| B. | Consideration must be real |
| C. | Consideration may be past, present or future |
| D. | Consideration must move at the desire of promisor |
| Answer» A. Consideration must be adequate | |
| 160. |
Which one of the following statements about the doctrine of privity is correct? |
| A. | Only a party to the contract can sue |
| B. | Stranger to a contract cannot sue |
| C. | A contract is enforceable by a stranger |
| D. | Both (a)&(b) |
| Answer» D. Both (a)&(b) | |
| 161. |
'Consideration is the price for which the promise of the other is bought, and the promise thus given for the value is enforceable.' This definition of consideration is |
| A. | By Pollock |
| B. | By Justice Patterson |
| C. | By Cheshire and Fifoot |
| D. | In section 2(d) of the Contract Act |
| Answer» A. By Pollock | |
| 162. |
When 'at the desire of the promisor, the promisee or any other person has done or abstained from doing or does or abstain from doing some thing'- such act or abstinence or promise is called |
| A. | Agreement |
| B. | Contract |
| C. | Consideration |
| D. | Proposal |
| Answer» C. Consideration | |
| 163. |
An agreement without consideration is |
| A. | Void |
| B. | Illegal |
| C. | Voidable |
| D. | Enforceable |
| Answer» A. Void | |
| 164. |
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 | |
| 165. |
When one of the parties to the contract has performed its part of the promise which constitutes the consideration for the promise by the other side, it is known as |
| A. | Past consideration |
| B. | Executed consideration |
| C. | Executory consideration |
| D. | Future consideration |
| Answer» B. Executed consideration | |
| 166. |
Which of the following statement regarding past consideration is incorrect |
| A. | It is done before making the agreement |
| B. | A past consideration is valid |
| C. | It is done with the making of the contract |
| D. | None of the above |
| Answer» C. It is done with the making of the contract | |
| 167. |
Past consideration means |
| A. | Consideration and promise should move together |
| B. | Executed consideration |
| C. | Consideration is provided prior to the making of the contract |
| D. | Invalid consideration |
| Answer» C. Consideration is provided prior to the making of the contract | |
| 168. |
An executed consideration is |
| A. | An act of mutual exchange of promises |
| B. | An act done in the expectation of a proposal |
| C. | An act done by one party as part of his promise |
| D. | Past consideration |
| Answer» A. An act of mutual exchange of promises | |
| 169. |
An executory consideration is |
| A. | A consideration promised by the executive of a company |
| B. | A promise yet to be performed by both the parties |
| C. | Liability is outstanding on both the sides |
| D. | Both (b)&(c) |
| Answer» D. Both (b)&(c) | |
| 170. |
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 | |
| 171. |
P renders some service to D at D's desire. After a month D promises to compensate P for the service rendered to him, it is a |
| A. | Present consideration |
| B. | Past consideration |
| C. | Future consideration |
| D. | None of these |
| Answer» B. Past consideration | |
| 172. |
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 these |
| Answer» C. Enforceable by law | |
| 173. |
Which section of Indian Contract Act declares that an agreement made without consideration is void? |
| A. | Section 23 |
| B. | Section 24 |
| C. | Section 25 |
| D. | Section 26 |
| Answer» C. Section 25 | |
| 174. |
A promise not supported by consideration is called a |
| A. | Proposal |
| B. | Acceptance |
| C. | Agreement |
| D. | Nudum pactum |
| Answer» D. Nudum pactum | |
| 175. |
A promise to pay a time-barred debt must be |
| A. | Oral |
| B. | Written and signed |
| C. | Registered |
| D. | Written and registered |
| Answer» B. Written and signed | |
| 176. |
Which of the following statement is incorrect |
| A. | Consideration must be real |
| B. | Performance of existing obligation is no consideration |
| C. | Forbearance to sue is good a consideration |
| D. | Agreements without consideration are always void |
| Answer» D. Agreements without consideration are always void | |
| 177. |
A promise to pay a time barred debt is enforceable, if some conditions are fulfilled. Which of the following conditions is not required? |
| A. | It must be signed by the promisor |
| B. | It must be definite and express |
| C. | It must be in writing |
| D. | It must be registered |
| Answer» D. It must be registered | |
| 178. |
A man cannot acquire rights under a contract to which he is not a party. Which one of the following is not an exception to this rule |
| A. | Beneficiaries under trust |
| B. | Family settlement |
| C. | Gift |
| D. | Assignment of rights |
| Answer» C. Gift | |
| 179. |
A person is competent to contract if: |
| A. | He has a PAN Card number |
| B. | He has a Ration Card number |
| C. | He fulfills the conditions of sec. 11 |
| D. | He is a graduate |
| Answer» C. He fulfills the conditions of sec. 11 | |
| 180. |
Capacity to contract has been defined in |
| A. | Section 10 |
| B. | Section 11 |
| C. | Section 12 |
| D. | Section 25 |
| Answer» B. Section 11 | |
| 181. |
Which of the following is not competent to contract? |
| A. | A minor |
| B. | A person of unsound mind |
| C. | A person who has been disqualified from contracting by some law |
| D. | All of these |
| Answer» D. All of these | |
| 182. |
Two persons have the capacity to contract |
| A. | If both are not of unsound mind |
| B. | If none is disqualified from contracting by any law to which he is subject |
| C. | If both have attained the age of maturity |
| D. | All of the above |
| Answer» D. All of the above | |
| 183. |
For necessaries supplied to a minor |
| A. | he is personally liable |
| B. | his parents are liable |
| C. | his estate is liable |
| D. | the contract is valid under Indian law |
| Answer» C. his estate is liable | |
| 184. |
A minor is a person who has not attained the age of: |
| A. | 15 years |
| B. | 18 years |
| C. | 21 years |
| D. | 25 years |
| Answer» B. 18 years | |
| 185. |
An agreement with a minor is: |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | Illegal |
| Answer» A. Void | |
| 186. |
A contract for the benefit of the minor is : |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Illegal |
| Answer» A. Valid | |
| 187. |
A married woman is under no disability as regards capacity to contract |
| A. | under English law only |
| B. | under Indian law only |
| C. | under both English and Indian laws |
| D. | for luxury only |
| Answer» C. under both English and Indian laws | |
| 188. |
An agreement entered into by a minor is |
| A. | Valid and binding |
| B. | Voidable at the option of the minor |
| C. | Void ab initio |
| D. | Voidable at the option of either party |
| Answer» C. Void ab initio | |
| 189. |
A minor enters into agreement representing himself to be a major consider the following statement: 1. Minor commits fraud if the other party does not have personal knowledge of his age 2. Such agreement is not enforceable 3. The doctrine of estoppel does not apply in minor's case 4. Other party is entitled to get back the benefit passed to minor, if innocent about his age Which of the statements given above are correct? |
| A. | 1,3 and 4 |
| B. | 2 and 3 |
| C. | 1,2 and 4 |
| D. | 2 and 4 |
| Answer» B. 2 and 3 | |
| 190. |
M is a 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 |
| A. | The mortgage is not enforceable by M, because he is a minor |
| B. | The mortgage is enforceable but only when he attains majority |
| C. | The mortgage is enforceable by M even though he is minor |
| D. | None of these |
| Answer» C. The mortgage is enforceable by M even though he is minor | |
| 191. |
When a minor has been supplied with necessaries in credit |
| A. | The minor is not liable |
| B. | The minor's property' is liable |
| C. | The minor is personally liable |
| D. | The minor is liable at his option |
| Answer» B. The minor's property' is liable | |
| 192. |
A supplies B, a lunatic, with necessaries suitable to his condition in life. A is: |
| A. | Not entitled to be reimbursed from B's property |
| B. | Entitled to be reimbursed from B's property |
| C. | Personally liable |
| D. | None of these |
| Answer» B. Entitled to be reimbursed from B's property | |
| 193. |
When a person incurred expenses of ` 5000 for the necessaries supplied to the minor, he can recover the said amount from the |
| A. | Minor personally |
| B. | Property of the minor |
| C. | Property of his guardian |
| D. | None of these |
| Answer» B. Property of the minor | |
| 194. |
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 | |
| 195. |
A convict when undergoing imprisonment |
| A. | Is capable of entering into a contract |
| B. | Is incapable of entering into a contract |
| C. | Is capable of entering into a contract, if it is permitted by the court |
| D. | None of these |
| Answer» B. Is incapable of entering into a contract | |
| 196. |
A person who is not an Indian citizen is an Alien. Contracts with an alien friend, subject to certain restrictions are |
| A. | Void |
| B. | Unenforceable |
| C. | Valid |
| D. | Invalid |
| Answer» C. Valid | |
| 197. |
A minor's agreement is void. This was held in case of |
| A. | Mohori Bibee v. Dharmodas Ghosh |
| B. | Nihal Chand v. Mr. Jan MohornedKhan |
| C. | Suraj Narain v. Sukhu Aheer |
| D. | None of these |
| Answer» A. Mohori Bibee v. Dharmodas Ghosh | |
| 198. |
A mortgage executed by minor is…………… |
| A. | Void |
| B. | Voidable |
| C. | Both (a) and (b) |
| D. | Neither (a) nor (b) |
| Answer» A. Void | |
| 199. |
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 | |
| 200. |
Is purchase of property for the benefit of a minor by his maternal uncle valid? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | None of the above |
| Answer» A. Yes | |
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