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Mock Test | Contract

Confidant-Classes-for-Law-CLAT-Judicial-Services-Preparation
Confidant-Classes-for-Law-CLAT-Judicial-Services-Preparation

Welcome to your Mock Test | Contract

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1. The person making the proposal is called the ............ and the person accepting the proposal is called :

2. Every promise and every set of promises, forming the consideration for each other, is called as:

3. An agreement enforceable by law is:

4. An agreement which is enforceable by law at the option of other or others is:

5. The Indian Contract Act, 1872 extends to:

6. The Act which deals with the matters relating to the contract is titled as:

7. An agreement not enforceable by law is said to be:

8. When the communication of a proposal is complete:

9. When an acceptance may be revoked:

10. In order to convert a proposal into a promise, the acceptance must:

11. When a proposal may be revoked:

12. A contract which ceases to be enforceable by law becomes void when it ceases to be:

13. The Indian Contract Act,1872 which was enacted on 25 April, 1872 came into force with effect from:

14. A 'proposal' is defined as:

15. An agreement was entered into with a minor. This is agreement is

16. Where a minor has entered into a contract for purchase of necessary items. In such cases:

17. Consent is defined as:

18. Consent is said to be free when it is not caused by:

19. A, being indebted to B, the money lender of his village, contracts a fresh loan on terms which appear to be unconscionable. This will be termed as:

20. When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract :

21. If the consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17, the contract, nevertheless, if the party whose consent was so caused had the means of discovering the truth with ordinary diligence:

22. A fraud or misrepresentation which did not cause the consent to a contract of the party on whom such fraud was practised, or to whom such misrepresentation was made, does not render a contract:

23. Where both the parties to any agreement are under a mistake as to a matter of fact essential to the agreement,

24. When consent to an agreement is caused by undue influence, the agreement is a contract

25. What is a sound mind for the purposes of contracting:

26. Who are competent to contract:

27. What agreements are contracts:

28. Every agreement by which any party thereto is restricted absolutely from enforcing his rights under or in respect of any contract, by the usual legal proceedings in the ordinary tribunals, or which limits the time within which he may thus enforce his rights:

29. The agreements which are in restraint of trade are;

30. The consideration must be:

31. Legal Principle: An offer made and accepted with an intention to enter into legal contract is enforceable. Factual Situation: Romeo promised a gold necklace to Juliet at the time of their marriage. Romeo fails to bring the necklace. Issue: Can Juliet claim the necklace?

Decision:

32. Legal Principle: An offer made and accepted with an intention to enter into a legal contract is enforceable.

Factual Situation: X promises to pay Y, his wife pocket money 500 per month. After two months he stops the
pocket money.
Issue: Can Y sue X?
Decision:

33. Legal Principle: A right of action cannot arise out of an illegal activity.

Factual Situation: A agrees to pay 50,000 to B if B kills C to pay to B, A borrows 50,000 from D who is also aware  of the purpose of loan. B kills C but A refuses to pay. A also refuses to repay the loan to D.
Issue: What is the nature of contract?
Decision:

34. Legal Principle: The act of using influence on another and taking undue advantage of that person is called undue influence

Factual Situation: A. is in dire need of money, so sells his newly purchased car worth R3 for T50,000 Later on he wants to set aside the contract on the ground of inadequacy of consideration?
Issue: Can he do so?
Decision:

35. Legal Principle: A minor is a person who is below the age of 18. However, where a guardian administers the minor's property the age of majority is 21.

Factual Situation: M. a guardian, on behalf of a minor, L entered into a contract with S for purchase of certain
property for the benefit of L.
Issue: Is the contract valid?
Decision:

36. Legal Principle: Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, to that extent is void.

Factual Situation: A sells goodwill of his business to B, and agrees with him to refrain from carrying on a similar business within specified local limits.
Issue: Is the agreement valid?
Decision:

37. Legal Principle: Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, to that extent is void.

Factual Situation: X, a doctor in Chandigarh engages Y as his assistance for a period of three years on condition that after the expiry of three years, Y is not to practice in Chandigarh on his own for a period of 5 years. After the first three years had expired, Y in breach of his agreement starts practicing in Chandigarh.
Issue: Is the agreement valid?
Decision:

38. Legal Principle: Every agreement by which anyone is estrained from exercising a lawful profession, trade, or business of any kind, to that extent is void

Factual Situation: X a shopkeeper agrees to pay Y, who is his rival in the business a sum of money as compensation if Y closes his business. Y closes his business
Issue: Is the agreement valid?
Decision:

39. Legal Principle: Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, to that extent is void

Factual Situation: A promises B in consideration of Rs. 1000 never to marry throughout his life
Issue: Is the agreement valid?
Decision:

40. Legal Principle: Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, to that extent is void.

Factual Situation: A promised to marry none else except Miss B, and in default to pay her a sum of 2,000. Miss B sued A for the recovery of that sum on the ground that A married someone else.
Issue: What is the nature of the agreement?
Decision:

41. Factual Situation: Mr Balfour was employed in Ceylon. Mrs Balfour owing to ill health had to stay in England and Could not accompany him to Ceylon. Mr Balfour promised to send her £30 per month while he was abroad. But Mr Balfour failed to pay that amount. So Mrs Balfour fileda suit against her husband for recovering the said amount. Issue: Is Balfour liable for breach of contract?

Decision:

42. Factual Situation: Two firms entered into a written contract for the sale and purchase of tissue paper. The agreement contained a clause to the effect that 'this agreement is not (a) The contract is valid as A voluntarily makes git (b) The contract is not valid because A made a gift under undue influence so it is voidable at the option of A (c) It is void ab initio. entered into, nor is this memorandum written, as a formal or a legal document, and shall not be subject to legal juris diction in the law courts'. Since the goods were not delivered, the buyers brought an action for non-delivery.

Issue: Are the sellers liable?
Decision:

43. Legal Principle: When the parties to an agreement agree on the same thing in the same sense, there arise legalk binding obligations between them Factual Situation: A who owns two cars, one Maruti and the other Santro, offers to sell B one car. A intends to sell the Maruti car. B accepts the offer thinking that it is the Santro.

Issue: Is A liable?
Decision:

44. Legal Principle: 1. The act of using influence on another and taking undue advantage of that person is called undue influence 2 In order to prove undue-influence, there has to be a pre-existing relationship between the parties to a contract. The relationship has to be of such a nature that one is in a position to influence the other. If it is proven that there has been undue influence, the party who has been so influenced need not enforce the con-tract or perform his obligations under the contract.

Factual Situation: A, a person of weak intelligence made
a gift of his entire property to B, who was in a position to dominate him. The gift having been obtained by undue influence is voidable at the option of A.
Issue: Is this contract valid?
Decision:

45. Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer Factual Situation: S, intending to deceive Y, falsely represents that 500 maunds of indigo are made annuaily X's factory and thereby induces Y to buy the factory Issue: Is it a valid contract?

Decision:

46. Legal Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted but also that the acceptance is notified to the proposer

Factual Situation: D sent his servant P to trace his missing nephew. D in the meantime announced a reward for providing information about the missing boy P, in ignorance of the announcement traced the boy and Informed D. P later on came to know and he claimed it.
Issue: Is the servant entitled to reward?
Decision:

47. Legal Principle: Auction/Sale of goods is an invitation to offer; not an offer.

Factual Situation: N advertised in the newspaper to effect sale of his goods on a particular day at a particular
place. H traveled a long distance to bid for the things. On arrival, he found that the sale was cancelled. He sued N for breach of contract.
Issue: Is N liable?
Decision:

48. Legal Principle: Communication of offer and acceptance is must for a valid contract. Factual Situation: A proposes by letter, to sell a house to Bat a certain price. A revokes his proposal by telegram Issue: Whether the revocation of an offer is valid?

Decision:

49. Legal Principle: With a counter offer the original offer lapses. Factual Situation: A offers to sell his house to B for1,000. B replies offering to pay 950. A refuses Subsequently B writes accepting the original offer

Issue: Is the offer sustaining or lapsed?
Decision:

50. Legal Principle: When, at the desire of the promisor the promisee or, any other person has done or abstained from doing. or does or abstains from doing, or promises to do or to abstain from doing, something. such act or abstinence or promise, is called a consideration for the promise'.

Factual Situation: A lawyer gave up his practice and served as manager of a land owner at the latter's request in lieu of which the land owner subsequently promised a pension.
Issue: What is the nature of contract?
Decision:

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