MCQ Law of Contract [Part-5]


 201. A ……… is a mercantile agent entrusted with the possession of goods for the purpose of selling them. 

a. Commercial agent 

b. Factor 

c. Broker 

d. Commission agent 


202. Which of the following is not a type of commercial agent? 

a. Banker 

b. Special agent 

c. Broker 

d. Commission agent


203. Which of the following is not a right of the principal? 

a. Right to recover damage 

b. Right to demand account and to claim secret profit made. 

c. Right to remuneration d. To resist the agent’s claim for indemnity.


 204. Which of the following is not a duty of principal? 

a. To pay remuneration to agent 

b. To indemnify the agent against the consequences of all lawful acts. 

c. Right to be indemnified against consequences of acts done in good faith 

d. Duty to pay money received. 


205. Which of the following is not a non-mercantile agent. 

a. Attorneys 

b. Insurance agent 

c. Factor 

d. Solicitors 



206. Substitute agent is also called 

a. Co-agent 

b. Sub agent 

c. Junior agent 

d. Duplicate agent 


 207. Which of the following is not a termination of agency by acts of the parties. a. Agreement 

b. Revocation by principal 

c. Insolvency 

d. Revocation by agent 


208. Which of the following is not a situation of irrecoverable agency 

a. Where the agency is coupled with interest. 

b. Where the agency has incurred a personal liability. 

c. Where the agent has partly exercised his duty. 

d. Where the agent doesn’t exercise his duty. 


209. Which one of the following is not a duty of an agent? 

a. Duty to exercise care and skill 

b. Duty to take a commission 

c. Duty to account 

d. Duty to avoid conflict of interest 


210. What is an undisclosed agency? 

a. When a third party is not informed of the exercise of the principal and believes the agent is acting on his own behalf. 

b. When the agent indicates through conduct he is acting as an agent. 

c. When the principal is not in existence. 

d. Where the third party knows there is a principal but doesn’t know his name. 



211.  The sale of goods act 1930 deals with the  

a) movable goods only     

b)period of contract 

c) immovable goods     

d)none of the above 


212. Contract of sale may be 

a) agency relationship     

b)sale or agreement 




213. Representation of contract for the main purpose are called 

a) warranties     


c) agreements     



214.  Warranty is a contract means 

a) collateral  to main purpose 

b)condition to main purpose 

c)  representation to main purpose 

d)none of the above 


215. A contract for the sale of goods which provides that the property would pass to the buyer on full payment of price and execution of sale deed is known as  

a)sale of approval      

b)hire purchase agreement 

c) sale      

d)agreement to sell 



216. The term goods for the purpose of sale of goods act does not include 

a) actionable      


c) immovable property     

d)all of these 


217. A contract for the sale of “future goods is “ 

a) agreement to sell     


c) void       



218. The merchantable in sec 14(2)defined in 

a) Indian contract act     

b) sale of goods act 

c) English sale of goods act    

d) none if this 


219. In a hire purchase agreement the hirer  

a) must buy  the goods     

b)must return the goods 

c) has an option to buy the goods   

d)not given the possession  of goods 


220. Which of the following is not an implied condition in a contract of sale? 

a) condition as to description    

b)condition as to title 

c) condition as to free from encumbrance  

d)condition as to sample 



221. Which of the following modes of delivery of goods is considered  effective for a valid contract of sale? 

a) constructive delivery     

b)symbolic delivery  

c) actual delivery                 

d)all of this 


222.Delivering the keys of a godown in which goods sold are stored amounts to  

a) delivery by attornment    

b)symbolic delivery 

c) actual delivery     

d)none of these 


223.The unpaid seller can exercise his right of lien over the goods for  

a) any lawful charges     

b)price of goods 

c) storage charges              

 d)all of these 


224. In case on sale of approval the ownership is transferred to the buyer when he  

a) adopts the transactions    

b)accept the goods 

c) fail to return goods             

d)in all the above cases 


225.On the payment of price by the buyer ,if the seller fails to deliver the goods ,then the buyer can file a suit for 

a) refund of price                


c) none of this      

d)both (a )and (b) 



226.An auction sale is complete on the  

a) fall of hammer               

b)delivery of goods 

c) payment of price     

d)both (b) and (c) 


227.where the goods are delivered to a carrier or wharfinger for the purpose of transmission to the buyer, the delivery is 

a) invalid delivery               

b)valid and effective 

c) conditional      

d)none of this 


228.The property in the goods means the 

a) possession of goods     

b)custody of goods 

c) ownership of goods     

d)both(a) and (b) 


229.The goods are the risk of a party who has the 

a) ownership of goods     

b)possession of goods 

c) custody of goods     

d)both (b) and (c) 


230. In Case of an unconditional contract of sale, the property passes to the buyer at the time of making the contract. for this to apply, the goods must be 

a) specific                 

b)in a deliverable state 

c) physically transferred to buyer   

d)both(a) and (b) 



231. In which of the following cases, the unpaid seller loses his right of lien? 

a) delivery of goods to buyer   

b)delivery of goods to carrier 

c) tender of price by buyer   

d) all of these


232. where in an auction sale, the seller appoints more than one bidder, the sale is 

a) illegal       





233.  “No one can transfer rights which he himself does not have” that principle carried in 

a) companies act 2013    

b)industrial act 

c) “nemo dat quod non habet”    

d)none of the above 


234. A stipulation which is essential to the main purpose of the contract and if prove false give the buyer a right terminate the contract is legally known as  

a) guarantee             


c) warranty             

d)none of these 


235. In  case a condition is changed to the status of a warranty ,then the buyer 

a)loses the right to reject goods   

b)retains right claim damages only 

c)both (a) and (b) are true   

d)both (a) and (b) are false 


236. The unpaid seller can exercise his right of stoppage of goods in transit where the buyer 

a)refuse to pay price     

b)acts fraudulently 

c)become insolvent     

d)all of these 


237. where by exercising the right of stoppage in transit the unpaid seller regains the possession of goods, then 

a) unpaid seller lien revives   

b)contract of sale in terminated 

c) unpaid seller  lien does not revive  

d)seller’s possession in unlawful 


238. where the seller has expressly reserved his right to bid in the auction to bid in his behalf ,the seller can appoint  

a) only one bidder     

b) two bidders 

c) any number  of bidders   

d) none,seller has no such right 


239. A bidder at an auction sale can withdraw his bid  

a) before fall on hammer    

b)any time during auction 

c) before payment of price   

d)none of these 


240.On sellers wrongful refusal to deliver the unascertained goods to the buyer, the buyer can file a suit for recovery of 



c)both (a) and (b)     

d)none of these  



241.A contract by which one party promises to save the other from loses caused to him by the conduct of the promise himself or by the conduct of any other person is called a ________ 

a) Contract of indemnity   

b) Contract of guarantee 

c) Quasi contract    

d) none of these 


242. The person who promises to make good the loss is called the ___ 

a) Indemnified     

b) None of these 

c) Indemnifier     

d) Indemnifier holder 


243. The person whose loss is to be made good is called the  

a) Indemnifier          

b) Principal Debtor 

c) Indemnity holder      

d) none of these 


244. When a guarantee extends to a single transactions or debt it is called  

a) Retrospective guarantee   

b) Specific Guarantee 

c) Prospective guarantee   

d) Fidelity guarantee 


245. A continuing guarantee may at any time be revoked by the surety as to future transactions by giving a ____ to the creditor. 

a) By notice    

b) By Oral 

c) By death of surety   

d) none of these 



246. ________ is a guarantee given for the good conduct or honesty of a person employed in a particular office. 

a) Fidelity guarantee    

b) Continuing Guarantee 

c) Retrospective guarantee   

d) specific guarantee 


247. When a guarantee given for an existing debt or obligation it is known as  

a) Specific guarantee    

b) fidelity guarantee 

c) Retrospective guarantee    

d) continuing guarantee 


248.  A ______ is a contract to person the promise or to discharge a liability of a third person in case of his default. 

a) Contract of indemnity   

b) contract of guarantee 

c) Implied contract    

d) express contract 


249.  The person who gives the guarantee is called  

a) A surety     

b) Guarantee 

c) Competent     

d) creditor 


250. The person to whom the guarantee is given is called  

a) Indemnifier     

b) Principal debtor 

c) Indemnified 

d) Creditor 



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