1.
When two sovereign nations enter into an agreement but do not expressly mention the governing law for dispute resolution, which rule determines the applicable law?
(a) The law of the place where the agreement is carried out
(b) The law of the country where the offer originated
(c) The law intended by the parties, i.e., the system with which the contract is most closely connected
(d) The law of the place where the agreement was formally executed
2.
For the purposes of the Indian Contract Act, what is the legally recognised age of majority?
(a) 21 years
(b) 16 years for females and 18 years for males
(c) 18 years
(d) 18 years for females and 21 years for males
3.
The legal doctrine that invalidates a contract due to subsequent impossibility of performance is founded on which principle?
(a) Unjust benefit obtained by one party
(b) Implied terms of the agreement
(c) Equitable and reasonable adjustment
(d) Supervening impossibility of performance
4.
X borrows ₹10,000 from Y and Z jointly and promises to repay them with interest on a fixed date. Upon the death of Y, who is entitled to demand performance of the contract?
(a) Z alone
(b) The legal heirs of Y exclusively
(c) The legal heirs of Y, and later the heirs of Z upon his death
(d) Z and the legal representatives of Y jointly
5.
A agrees to give her daughter B on hire to C for the purpose of concubinage without B’s consent. What is the legal status of such an agreement?
(a) Valid due to free consent of A and C
(b) Voidable at the discretion of B
(c) Void due to absence of B’s consent
(d) Void as the agreement is immoral
6.
An employer directs his employee to sell the employer’s goods at a price substantially lower than the prevailing market rate. The employee may avoid the contract on the ground of:
(a) Fraud
(b) Coercion
(c) Mistake
(d) Undue influence
7.
X is a lessee of land owned by Y. Due to Y’s default in paying government revenue, the land is about to be auctioned, which would annul X’s lease. X clears Y’s dues to prevent this. What is X’s legal right?
(a) No recovery as there was no contractual obligation
(b) No recovery as payment was made to protect X’s own interest
(c) No recovery as the act was voluntary
(d) X is entitled to reimbursement from Y
8.
An offer is sent by post. The offeree writes “accepted” on the letter but keeps it in a drawer and never posts it. What is the legal nature of this transaction?
(a) A voidable agreement
(b) A valid and enforceable contract
(c) A void agreement
(d) No agreement, as acceptance was never communicated
9.
X agrees to sell 1,000 tons of iron to Y at ₹100 per ton by 31-1-2002. To fulfil this, X contracts with A to purchase iron at ₹80 per ton, clearly informing A of the purpose and deadline. A fails to deliver, causing X to breach his contract with Y. What damages can X claim from A?
(a) Damages in the nature of penalty
(b) Only the damages X had to pay Y
(c) Only the loss of expected profit
(d) Loss of profit and damages payable by X to Y due to breach
10.
X enters into a contract with Y, but Y commits fraud in inducing the agreement. What remedy is available to X?
(a) Only recovery of actual loss without rescission
(b) Rescission of contract without compensation
(c) Recovery of damages without setting aside the contract
(d) Rescission of the contract along with a claim for damages