Question

In the following multiple choice questions choose the most appropriate answer:

1. An instrument with words “I promise to pay you Rs. 10,000 or give my sofa set” is-
   1. a cheque
   2. a promissory note
   3. a bill of exchange
   4. none of the above

2. A contract can be discharged by

1. Performance
2. Frustration
3. Novation
4. Any of the above.

3. Consideration is

1. Is a type of a bailment
2. Need not be adequate
3. An unpaid seller’s right
4. All of the above.

4. Price List in a shop is

1. An agreement to sell
2. An invitation to offer
3. Type of bailment
4. Unpaid seller’s right
5. None of the above

5. A makes a contract with B to sell a horse to B at a specified price, if C, to whom the horse had been earlier offered, refuses to buy. This contract cannot be enforced by law-

1. unless and until C refuses to buy the horse
2. unless and until B refuses to buy the horse
3. unless and until A refuses to sell the horse
4. at all

6. Sonu contracts to perform at A’s theatre every Sunday for 2 months. After 3 rd Sunday the theatre is burnt by fire . This is a case of

1. Anticipatory breach of contract
2. Frustration
3. Novation
4. All the above

7. Agreements, the meaning of which is not certain, are called

a) Agreements with mistake

b) Ambiguous agreements

c) Unclear agreements

d) Contingent agreements

8. The buyer purchases at his own risk. This doctrine is called
   1. Novation
   2. Caveat emptor
   3. Anticipatory breach of contract
   4. None of the above

9. Where a promisor has offered to perform his promise and the promisee refuses to accept   the performance

1. the promisor is not responsible for non-performance
2. the promisor does not lose his rights under the contract
3. either a or b
4. both a and b

10. . On introduction of GST, following tax\duty has been abolished-

1. Excise duty
2. Service Tax
3. VAT on certain goods
4. All the above

Answer 1

1. Option d
2. Option d. After the fulfillment of the contract it can be discharged by any of the means
3. Option d.
4. Option b.
5. Option a.
6. Option b. As without the fault of either party is incapable of being performed due to an unforeseen event
7. Option c. Agreements whose meaning is not certain or capable of being made certain are void
8. Option b. A doctrine that places complete responsibility on buyer
9. Option d.
10. Option d