Question Bank

Unit 1-Legal Framework Of Business

Indian Contract Act,1872
Q1: Short Questions:
1. What is contract?
2. What is Law?
3. What are the elements of a contract?
4. Define acceptance and proposal.
5. Under what circumstances, a proposal comes to an end and not being open to acceptance?
6. What do you mean by consideration?
7. What are the essential factors of consideration?
8. What is the difference between void and voidable contract?
9. In which cases a contract can be void?
10. What are the remedies for breach of contract?
11. What are the rights of Bailor and Bailee in the contract act?
12. Explain Consensus-ad-idem.
13. What is cross offer?
14. What is Express and Quasi contract?
15. State Legal rules as to consideration.
16. What is the concept of Stranger to contact?
17. List down disqualified persons to enter a contract?
18. Define Free Consent.
19. State the difference Coercion and Undue influence.
20. What are the essentials of Fraud?
Q2: Long Questions:
1. Define contract? Discuss the essential elements of a valid contract?
2. Discuss the law relating to communication and revocation of offer?
3. When does an offer comes to en end?
4. Define acceptance. What are the rules for a valid acceptance?
5. State and explain classification of contact.
6. All Agreements are contracts but all contracts are not agreement. Explain with example.
7. What are the presumptions as to undue influence?
8. Under which circumstances silence is considered as fraud?
9. What is Legal Relationship with reference to Business Law? Explain with example.
10. State and explain the classification of contract on the basis of validity.
11. Explain the different aspects of contract based on formation.
12. Explain the different aspects of contract based on performance.
13. Explain Discharge of contract by impossibility of performance.
14. What are the acceptions to discharge of contract?
15. State and explain the consequences of breach of contract.

16. What are the different remedies for breach of contract?

17. What are the different types of damages. Explain them with example.
18. Explain different types of offer.
19. What is offer? Explain the legal rules for an offer.
20. Explain contract of Indemnity.
Q3: MCQ:
1. When one person signifies to another his willingness to do or to abstain from doing any
thing with a view to obtaining the assent of that other person to such act or abstinence he

2.

3.

4.

5.

6.

is said to make a
A. Proposal
B. Promise
C. None of these
D. Both A. and B.
The person making the proposal is called
A. Promiser
B. Promisee
C. Both of above
An agreement enforceable at law is a
A. Enforceable acceptance
B. Accepted offer
C. Approved promise
D. Contract
Which one is true
A. proposal + acceptance = promise
B. promise + consideration = agreement
C. agreement + enforceability = contract
D. all the above
Goods displayed in the shop with price tag is
A. Offer
B. invitation to offer
C. counter offer
D. none of the above
Communication of a proposal is complete
A. when it is put in the course of transmission
B. when it comes to the knowledge of the person to whom it is made
C. when the proposal is communicated to the person to whom it is made
D. all the above

7. Acceptance to be valid must

A. be unqualified
B. both be absolute & unqualified
C. be absolute
D. be conditional
8. A contract with or by a minor is
A. valid contract
B. void contract
C. voidable contract
D. voidable at the option of either party
9. Promises which form the consideration or part of the consideration for each other are
called
A. Reciprocal promises
B. Cross offers
C. Conditional offer
D. Conditional promises
10. Which is correct
A. proposal + acceptance = promise
B. promise + consideration = agreement
C. agreement + enforceability = contract
D. all the above
11. Acceptance to be valid must
A. be absolute
B. be conditional
C. be unqualified
D. both be absolute & unqualified
12. A proposal can be accepted
A. by notice of acceptance
B. by acceptance of consideration for a reciprocal promise
C. by performance of condition of proposal
D. all the above
13. Competency to contract relates to
A. age of the parties
B. intelligence of the parties
C. soundness of mind of the parties
D. both age & soundness of mind
14. When the consent is caused by misrepresent-tation, the contract is
A. Valid
B. Void
C. Voidable
D. Illegal
15. When the consent is caused by undue influence, the contract is
A. Valid
B. Void
C. Illegal
D. Voidable
16. Where one of the parties is under a mistake as to matter of fact the contract is

A. Valid
B. Void
C. Voidable
D. Illegal
17. Considerations & objects are unlawful where it is
A. forbidden by law or defeat the provision of any law
B. which is fraudulent
C. which is immoral & against the public policy
D. all the above
18. Consideration should be something in return of promise which
A. both the law and parties regard, as having some value
B. only law regards a having some value
C. only the parties regard some value
D. only adequate value necessary
19. Consent is free if not caused by
A. coercion & undue influence
B. fraud and misrepresentation
C. all the above
D. None of the above
20. Consent means
A. agreeing on the same thing in the same sense
B. agreeing on the same thing at the same time
C. agreeing on the same thing at different time
D. agreeing on different things at different times