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Contract Law

1,497 Questions

Contract Law encompasses the rules and statutes governing legally binding agreements between parties. This hub provides practice questions on essential topics like legal obligations, breach of contract, and termination clauses. These concepts are frequently tested in law entrance tests and various other competitive government examinations.

Legal obligationsVoid contractsBreach of contractCommunication of acceptanceStatute of FraudsContract clauses

Contract Law Questions

Multiple choice book keeping and accountancy accounting for bills of exchange meaning, definition and characteristics of promissory note promissory note bills of exchange and promissory note nature, advantages and types of cheques

The undertaking contained in a promissory note, to pay a certain sum of money is _________________.

  1. Conditional

  2. Unconditional

  3. May be conditional or unconditional depending upon the circumstances

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A core requirement of a valid promissory note is that the promise to pay must be unconditional.

Multiple choice book keeping and accountancy accounting for bills of exchange meaning, definition and characteristics of promissory note promissory note bills of exchange and promissory note nature, advantages and types of cheques

Mr. Amit signs on instrument in the following terms.
(i) " I promise to pay B or order Rs $500$"
(ii) " I promise to pay B Rs$500$, first deducting all other sums which shall be due to him."
(iii) " I promise to pay B Rs$500$ on D's death, provided D leaves one enough to pay that sum"
Which of the following are promissory notes?

  1. Only (i)

  2. Both (i) & (ii)

  3. Both (ii) & (iii)

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Only (i) is unconditional and for a certain amount. (ii) involves a deduction (uncertainty), and (iii) is conditional on D's death and D's estate value.

Multiple choice book keeping and accountancy accounting for bills of exchange meaning, definition and characteristics of promissory note promissory note bills of exchange and promissory note nature, advantages and types of cheques

The expression "after sight" in a promissory note means that ____________.

  1. The payment can be demanded without it has been shown to the maker.

  2. The payment cannot be demanded on it unless it has been shown to the maker.

  3. The holder may treat the instrument, at his option, either as a bill of exchange or as a promissory note.

  4. The payment cannot be demanded
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

Mr. Y a member of Company XYZ makes a contract with his company XYZ _______________.

  1. it is illegal.

  2. it is legal.

  3. depend in the situation of case.

  4. none of the above.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

XYZ parties must be in agreement (after an offer has been made by one party and accepted by the other). Something of value must be exchanged -- such as cash, services, or goods (or a promise to exchange such an item) for something else of value.

Multiple choice book keeping and accountancy reserve and fund kinds of reserves secret reserve reserves

A specific reserve can be created for specific purpose.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Specific reserve is that reserve which is created for a specific purpose and can be utilized only for that purpose. For example, Dividend Equalization Reserve is a specific reserve, because it is created to maintain a steady rate of dividend flow. Debenture redemption reserve, Capital redemption reserve, Investment fluctuation reserve etc. are the example of specific reserve.

Multiple choice chemistry the periodic table dobereiner's triads development of the modern periodic table into the history

The law of  traids is not applicable on

  1. $Cl, Br,I$
  2. $Na, K, Rb$
  3. $S, Se, Te$
  4. $Ca, Sr, Ba$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dobereiner's Law of Triads states that the atomic weight of the middle element is approximately the average of the other two. Na, K, and Rb do not fit this pattern because Rb is significantly heavier than the average of Na and K.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

A co-parcener __________ ask for accounts.

  1. Cannot

  2. Can

  3. Both (A) & (B)

  4. (A) or (B)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A co-parcener is any partner who just has share in the firm's profit and loss and does not have any right in the firm's business. Such a partner can not ask for the accounts of the firm under any circumstances. 

Multiple choice organization of commerce and management markets and marketing meaning, nature and importance of services introduction to services nature and types of services

In order for promissory estoppel to arise, a number of requirements exist. Which of the following is NOT a requirement for promissory estoppel?

  1. The promise must be made by clear words.

  2. It must be inequitable for the promisor to go back on his promise.

  3. The promisee must rely on the promise.

  4. There must be a clear promise that legal rights will not be enforced.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In order for promissory estoppel to arise, a number of requirements exist. The promise must be made in clear words is not a requirement for promissory estoppel. Promissory estoppel can be defined as legal principle which is enforceable y law even if the promise is made without formal consideration.

Multiple choice commercial applications functioning of commercial organisation definition and functions of production department production or works department ideologies/concepts/views of marketing management

Choose the correct answers from the following alternatives given
An offer automatically lapes by the death or insanity of the:

  1. offerer even if the offer is accepted in ignorance of the death or insanity of the offerer

  2. offeree if the offeree dies or becomes insane before accepting the offer

  3. offeree if the offeree dies or becomes insane after accepting the offer

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under contract law, an offer lapses if the offeree dies or becomes insane before they have accepted the offer.

Multiple choice civics why do we need a parliament? parliamentary procedures parliamentary system parliamentary system and procedures

What is meant by an Adjournment Motion?

  1. A proposal to lay aside all other business and take up a definite matter of urgent importance

  2. A proposal to lay aside all other business and take up a matter of not much importance

  3. A proposal to lay aside all other business and take up an indefinite matter

  4. A proposal to lay aside all other business and take up a matter of little importance
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An Adjournment Motion is introduced in the Parliament to draw the attention of the House to a definite matter of urgent public importance by interrupting the normal business of the House.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

Dishonour of a foreign bill requires protest if the law of the place ________ requires.

  1. where it is drawn

  2. where it is payable

  3. where it is accepted

  4. where the payee reside
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A bill which is not an inland bill, is deemed to be a foreign bill. 

Example: (1) A bill of exchange drawn in India, on a person residing outside India and made payable outside India. 
(2) A bill drawn outside India and made payable in India.
(3) A bill drawn outside India, on a person residing in India.
In case of a bill, foreign bills of exchange must be protested for dishonour when such protest is required by law of the place where the bills are drawn.

Multiple choice book keeping and accountancy bill of exchange (trade bill) dishonour of a bill dishonour of bills bills of exchange advantages of bill of exchange

Which of the following statements is true?

  1. A bill cannot be endorsed more than two times

  2. A bill is drawn by purchaser

  3. A bill contains an unconditional promise to pay

  4. Noting charges are borne by the drawee in the event of dishonor of bill
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Noting charges are legally the responsibility of the drawee, as they are the party who failed to meet the obligation of the bill.