A
A sends an offer by post to B. B posts his acceptance immediately. Before A receives the acceptance, he sends a revocation of offer. The contract is:
A) Not valid because revocation reached before acceptance
B) Valid because acceptance was complete on posting the letter
C) Void because acceptance was not communicated
D) Voidable at A’s option
Answer: B) Valid because acceptance was complete on posting the letter
A guarantee covering multiple transactions over a period of time is called:
A) Specific guarantee
B) Continuing guarantee
C) Conditional guarantee
D) Special guarantee
Answer: B) Continuing guarantee
A person who receives goods under a contract of bailment is known as:
A) Bailor
B) Bailee
C) Pawnee
D) Surety
Answer: B) Bailee
A company’s logo and brand identity are protected under:
A) Patent Act
B) Copyright Act
C) Trademark Act
D) GI Act
Answer: C) Trademark Act
. A contract entered into because of fraud is generally:
A) Void
B) Voidable at the option of the affected party
C) Always valid
D) Illegal
Answer: B) Voidable at the option of the affected party
A company develops a new technology-based product using AI. To obtain patent protection, the invention must mainly satisfy:
A) Popularity, profitability and market demand
B) Novelty, inventive step and industrial applicability
C) Trademark registration and copyright protection
D) Commercial success and public acceptance
Answer: B) Novelty, inventive step and industrial applicability
A buyer purchases goods after informing the seller about the required purpose. The seller recommends suitable goods, but they fail. This relates to:
A) Caveat emptor
B) Implied condition of fitness
C) Transfer of ownership
D) Sale by sample
Answer: B) Implied condition of fitness
A contract dependent on the happening or non-happening of an uncertain future event is called:
A) Void contract
B) Contingent contract
C) Quasi-contract
D) Executed contract
Answer: B) Contingent contract
A breach of warranty under the Sale of Goods Act gives the buyer the right to:
A) Reject goods completely
B) Claim damages
C) Cancel all future contracts
D) Transfer ownership
Answer: B) Claim damages
A agrees to sell goods to B, but both parties believe the goods exist. Later they discover the goods had already perished before the agreement. The contract is:
A) Void due to mistake of fact
B) Voidable due to fraud
C) Valid
D) Illegal
Answer: A) Void due to mistake of fact
A gives his laptop to B for repair. B refuses to return it until repair charges are paid. B is exercising:
A) Right of pledge
B) Particular lien
C) General lien
D) Right of ownership
Answer: B) Particular lien
A minor enters into a contract by falsely stating that he is major. The contract is:
A) Valid due to false representation
B) Voidable by the minor
C) Void because a minor is incompetent to contract
D) Illegal
Answer: C) Void because a minor is incompetent to contract
A offers to sell his car to B for ₹5 lakh. B sends acceptance through email, but due to a server error A does not receive it. The contract is:
A) Valid because acceptance was sent
B) Valid only if A knew about acceptance
C) Not complete because acceptance was not communicated to the offeror
D) Void because email acceptance is invalid
Answer: C) Not complete because acceptance was not communicated to the offeror
A doctor obtains an unfair contract from a patient who is dependent on him for treatment. The contract may be affected by:
A) Coercion
B) Undue influence
C) Misrepresentation
D) Mistake
Answer: B) Undue influence
Which of the following is an exception to the doctrine of privity of contract?
A) Stranger to consideration
B) Trust created for the benefit of a third person
C) Unregistered agreement
D) Illegal agreement
Answer: B
The main purpose of a Geographical Indication (GI) is to protect:
A) New inventions
B) Brand logos
C) Products having a connection with a specific geographical region
D) Literary works
Answer: C) Products having a connection with a specific geographical region
In a contract of sale, ownership of goods passes according to:
A) Payment date only
B) Delivery date only
C) Intention of parties
D) Invoice date only
Answer: C) Intention of parties
When a surety pays the debt of the principal debtor, the surety obtains the right of:
A) Bailment
B) Subrogation
C) Novation
D) Assignment
Answer: B) Subrogation
The liability of the indemnifier begins:
A) Only after court order
B) When the loss covered by indemnity occurs
C) When contract is signed
D) After expiry of contract
Answer: B
The surety is discharged when:
A) Creditor extends time without surety's consent
B) Debtor fails to pay
C) Creditor demands payment
D) Debt increases
Answer: A
A agrees to sell a specific machine to B. Before delivery, the machine is destroyed accidentally. The agreement becomes:
A) Valid and enforceable
B) Void due to impossibility of performance
C) Voidable at buyer’s option
D) Illegal contract
Answer: B) Void due to impossibility of performance
A guarantees repayment of a loan taken by B from C. Later, without informing A, C and B increase the amount of loan and extend the repayment period. B defaults. C sues A for the entire amount. What is the liability of A?
A) A is liable because surety’s liability is always unlimited
B) A is liable only for the original amount guaranteed
C) A is discharged because the contract was changed without his consent
D) A becomes the principal debtor
✅ Answer: C) A is discharged because the contract was changed without his consent
Concept tested: Discharge of surety due to variance in terms of contract.
A delivers his laptop to B for repair. B repairs it but returns the laptop before receiving payment. Later B demands payment and asks for the laptop back as security. Can B claim lien?
A) Yes, because lien continues forever
B) Yes, because ownership belongs to B
C) No, because lien is lost once possession is surrendered
D) No, because repair charges cannot be claimed
✅ Answer: C) No, because lien is lost once possession is surrendered
Concept: Possession is essential for exercising lien.
A agrees to supply 500 bags of rice to B on 1st July. Before the delivery date, A informs B that he will not supply the goods. B immediately files a suit against A. This is:
A) Actual breach
B) Anticipatory breach
C) Breach after performance
D) Discharge by impossibility
Answer: B) Anticipatory breach
Ravi gave his laptop to Mohan for repair. Mohan repaired the laptop but refused to return it until Ravi paid the repair charges. Ravi argued that Mohan had no right to keep his laptop.
Question:
Whether Mohan can legally retain the laptop? Identify the legal principle involved.
A) No, because ownership belongs to Ravi
B) Yes, under the right of particular lien
C) Yes, under the right of pledge
D) No, because possession cannot be retained after repair
Answer: B) Yes, under the right of particular lien
Concept: A bailee can retain specific goods for charges related to those goods.