Specific Contract II

LLb 3rd 2nd Sem Question Bank

1. Which of the following section defines a

contract of indemnity? 10. If the bailee makes unauthorized use of
A. 120 the goods, the bailment is
B. 122 A. voidable at the option of the bailee
C. 124 B. void
D. 126 C. voidable at the option of the bailor
D. valid
2. In a contract of indemnity, how many
parties are there? 11. While exercising particular lien, the
A. 1 goods can be stopped
B. 2 A. indefinitely
C. 3 B. till the completion of the work
D. 4 C. till the remuneration is paid
D. till remuneration and interest charges
3. A contract of indemnity is are paid
A. A void agreement
B. A contingent contract 12. General lien can be exercised by
C. A voidable agreement A. a broker
D. A wagering agreement B. an agent
C. a banker
4. Which of the following section defines a D. a mechanic
contract of guarantee?
A. 123 13. A contract of life insurance is a
B. 124 A. Contract of indemnity
C. 125 B. Contingent contract
D. 126 C. Wagering agreement
D. Uncertain agreement
6. In a contract of guarantee, how many
parties are there? 14. A contract of insurance which does not
A. 1 provide for the payment of the fixed
B. 2 amount but according to
C. 3 The loss suffered by a injured person, is a
D. 4 A. Contract of indemnity
B. Contract of guarantee
7. A contract of bailment is defined under C. Wagering agreement
section D. Contingency contract
A. 146
B. 147 15. The party who gives the indemnity is
C. 148 known as
D. 149 A. the indemnity-holder
B. the indemnifier
8. A transaction of depositing money in a C. the surety
bank is D. the principal debtor
A. a contract of bailment
B. a contract of pledge 16. A contract in which one person
C. a contract of guarantee promises to compensate the other for the
D. a relation of creditor and debtor loss suffered by him, due to
the conduct of the promissory or of any
9. In a transaction of bailment there is other person is known as
transfer of A. Contract of indemnity
A. temporary object B. Quasi-contract
B. permanent object C. Contract of guarantee
C. independent use D. None of the above
D. None of the above

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 D. beneficial bailment
17. On making the payment of the loss
suffered by the indemnity-holder, the 25. X delivers his car to Y for repair. Here Y
indemnifier's right are not provided in any is a
section of the Contract Act, thus he gets A. bailor
A. the right of surety B. bailee
B. the fundamental rights C. pledgee
C. the moral right D. pawnor
D. none of the above
26. Under the pledge the person who
18. In a contract of guarantee, a person pledges is known as
who promises to discharge another’s' A. bailor
liability is known as B. pledgee
A. the principal debtor C. bailee
B. the indemnified D. pledgor
C. the creditor
D. the surety 27. The bailer is responsible for the loss
caused to the bailee on account of defects
19. A guarantee given for the minors' debt in the goods bailed but Unknown to him in
is the case of a
A. valid A. gratuitous bailment
B. voidable B. non-gratuitous bailment
C. void C. bailment for mutual beneift
D. illegal D. None of the above

20. The liability of a surety is 28. Insurance is based on the principle of

A. more than that of the principal debtor A. co-operation
B. less than that of the principal debtor B. democracy
C. same as that of the principal debtor C. equality
D. dependent on the courts' discretion D. welfare

21. The transfer of the ownership of goods 29. ----------- means to make good the
by one person to another for some specific actual loss caused to the insured
purpose is known as A. Reinsurance
A. bailment B. Indemnity
B. hypothecation C. Insurable interest
C. pledge D. Mitigation of loss
D. none of these
30. A person employed to do any act for
22. The delivery of goods by one person to another or to represent another in dealing
another for some specific purpose is known with a third person refers to
as A. Principal
A. bailment B. Employee
B. hypothecation C. Agent
C. pledge D. Development Officer
D. mortgage
31. Insurance contract is sort of contract
23. The bailment of goods can be made by which is appointed by
its owner of A. Indian Contract Act
A. movable goods only B. Indian Factory Act
B. both of these C. Indian Companies Act
C. immovable goods only D. Indian Finance Act
D. none of these
32. Out of the following, which is/are duty
24. In which of the following ways, the of a bailee?
bailment is not terminated? A. To take care
A. Expiry of a specified period B. To take a reasonable care
B. Fulfilment of an object C. To sell the goods
C. Bailer’s insolvency D. To retain the goods

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33. In a bailment the bailee ------------- for 41. The partnership may come to an end
the non-payment of dues due to the:
A. cannot sell the goods (a) Death of a partner
B. retain the goods (b) Insolvency of partner
C. sue for non-payment (c) By giving notice
D. all of the above (d) All of the above

34. Which of the following persons does not 42. In case of retirement of a partner full
have a right of general lien? good will is credited to the accounts of:
A. Bankers (a) All partners
B. Wharfingers (b) Only retiring partner
C. Finder of goods (c) Only remaining partner
D. Factors and policy brokers (d) None of the above

35. An ordinary partnership business can 43. Revaluation account is operated to find
have: out gain or loss at the time of:
(a) Not more than 50 partners. (a) Admission of a partner
(b) Not more than 20 partners. (b) Retirement of a partner
(c) Any number of partners. (c) Death of a partner
(d) Any number than 2 partners (d) All of above

36. A banking partnership business can 44. If all the partners, but one are insolvent
have: it is:
(a) Not more than 10 partners. (a) Dissolution of an agreement
(b) Not more than 20 partners. (b) Dissolution of firm.
(c) Not more than 50 partners. (c) May or may not cause dissolution
(d) Any number of partners. (d) None of above

37In the absence of an agreement profit 45. If no provision is made in agreement

and loss are divided by partners in the ratio regarding the duration of the partnership:
of: (a) Limited partnership
(a) Capital (b) Partnership at – will
(b) Equally (c) None
(c) Time devoted by each partners. (d) Particular partnership
(d) None of these
46. A person who declares by word of
38. Partnership is formed by the partners mouth as partner of the firm is called:
by: (a) Active partner
(a) Written agreement (b) Estoppel partner
(b) Oral agreement (c) Dormant partner
(c) Written or oral (d) Nominal partner
(d) None of these
47. The decision is Garner Vs Murray was
39. Any partner who investments in the given in:
business but does not take active part in (a) 1904
the business is: (b) 1905
(a) Secret partner (c) 1933
(b) Sleeping partner (d) 1804
(c) Active partner
(d) Nominal partner 48. Under the Supply of Goods and Services
Act 1982 the term implied into the contract
40. The written agreement of partnership is that the supplier will carry out the service
called: with reasonable case and skills is treated as
(a) Partnership deed a) Condition
(b) Articles of association b) Warranty
(c) Memorandum of association c) Innominate term
(d) Certificate of incorporation
d) Representation

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49. Under the Sale of Goods Act the seller Q 53. Contract of indemnity as defined in
has a duty to deliver the goods to the the Indian Contract Act 1872 covers
buyer. What is the legal meaning of only
'delivery'? (a) Liability incurred by something
a) Where the seller physically transports done by the indemnified of the
the goods to the goods to the buyer. request of the indemnifier.
b) The voluntary transfer of (b) Indemnity for loss caused by
possession from one person to human agency
another. (c) Indemnity arises from loss
c) The voluntary transfer of ownership caused by events or accidents
from one person to another. which do not depend upon
d) The voluntary transfer of ownership the conduct of indemnifier or
and possession from one person to any other person.
another. (d) None of these

50. Which one of the following statements Q 54. Contract by which one party
is incorrect? promises the other to save from loss
a) Unascertained goods are products which may be caused either by the
that have not yet been manufactured or conduct of the promisor or by the
acquired by the seller, or are unidentified. conduct of any other person is
b) Specific goods are those that are called.
identified at the time the contract of sale is (a) Guarantee
made. (b) Bailment
c) Ownership of goods always (c) Indemnity
passes when physical possession (d) Pledge
passes to the buyer.
d) Sale of Goods Act s17 provides that Q 55. In a contract of indemnity
the property in specific or ascertained (a) 3 parties and 3 contracts
goods passes when the parties intend it to (b)2 parties and 2 contracts
(c) Indemnity
be transferred
(d) Pledge
51. Sale of Goods Act 1979 implied various
Q 56. Right of indemnity holders is
terms into contracts for the sale of goods
specified in Section . . . . . .
but what type of goods are not included
(a) 126
under the Act?
a) Cars (b)125
b) Crops which are to be severed from (c) 124
(d) 123
land before sale.
c) Land.
Q 57. . . . . . . . is a contract to perform
d) Clothing advertised in catalogues.
the promise or discharge the liability
of a third person in case of his
52. Which one of the following statements
default
is correct?
(a) Guarantee
a) The Sale of Goods Act 1979 does not
apply if the exact price is not mentioned in (b) Bailment
(c) Indemnity
the contract.
b) The Sale of Goods Act 1979 only (d) Pledge
applies to contracts for the sale of goods
Q 58. Which of the following Section of the
where ownership is to be transferred
immediately the contract is made. Indian Contract Act, 1872 deals with
consideration for guarantee’?
c) The Sale of Goods Act 1979 applies to
(a) 126
contracts for the sale of goods where
(b) 127
ownership is to be transferred immediately
(c) 128
from the seller to the buyer and to
(d) 129
contracts where the seller agrees to
transfer ownership at a later date.
Q59. Under a contract of guarantee
d) A contract for the sale of goods must
(a) If principal debtor is liable,
be written
guarantor is liable.

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 (b)If principal debtor is not shall not act upon it until another
liable, guarantor is liable. person has joined in it as co-surety
(c) If principal debtor is liable, (a) The guarantee is invalid even if
guarantor is now liable. the other person joins as surety
(d) All the above (b)The guarantee is invalid as it
is conditional
Q 60. A guarantee: payment to B, a tea- (c) The guarantee is not valid if
dealer, to the amount of £ 100, for the other person does not
any tea he may from time to time join
supply to C. B supplies C with tea of (d) Both (b) and (c)
above the value of £ 100, and C
pays B for it. Afterwards, B supplies Q 65. Which the case of gratuitous bailor
C with tea of the value of £ 200. C or the bailor without reward it is
fails to pay. The guarantee given by duty of the bailor
A was a continuing guarantee, and (a) To deliver all the goods to the
he is accordingly liable to B to the bailee
extent of (b) Not to disclose any defect to
(a) £ 100 the bailee
(b) £ 200 (c) To disclose to the bailee all the
(c) £ 300 fact even those which are not
(d) None of the above aware
(d) To disclose to the bailee
Q 61. A contract between the creditor and faults in the goods bailed of
the principal debtor by which the which he is aware.
creditor make a compositions with,
or promises to give time to, or not Q 66. Which of the following Sections of
to sue, the principal debtor. the Indian Contract Act, 1872 deal
(a) Discharges the surety with ‘bailor’s duty to disclose faults
(b) Discharges the surety unless in good bailed’
the surety assents to such (a) 150
contract (b) 151
(c) Does not discharge (c) 152
(d) None of these (d) 153

Q 62. Which of the following Sections of Q 67. Bailment without reward is called
the Indian Contract Act, 1872 state (a) Pledge
that the creditor’s forbearance to (b) Constructive bailment
sue does not discharge surety? (c) Gratuitous bailment
(a) 134 (d) Hire
(b) 135
(c) 136 Q 68. Lien means
(d)137 (a) A charge
(b) A particular status
Q 63. If the creditor does any act which is (c) A guarantee
inconsistent with the right of the (d) A legal claim to hold
surety, or omits to do any act which property as security
his duty to the surety requires him
to do, and the eventual remedy of Q 69. Bailor in pledge is known as
the surety himself against the (a) Pawnor
principal debtor is thereby (b) Pawnee
consequently impaired then. (c) Bailee
(a) The surety is discharged (d) None of these
(b) The surety is not discharged
(c) Depends Q 70. For the purpose of pledge, delivery
(d) None of the above of possession of goods
(a) May be symbolic
Q 64. Where a person gives a guarantee (b)Either actual or constructive
upon a contract that the creditor (c) May be constructive
(d) Has to be actual

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 (b) Sections 124 to 216
Q 71. According approval to the act by (c) Section 76 to 100
person on whose behalf the act is (d) Section 124 to 228
done is called
(a) Agency Q 79. Which of the following is/are goods
(b)Licence within the meaning of the Sale of
(c) Ratification Goods Act 1930?
(d) None of these (a) Trademark
(b) Patent
Q 72. An agency is terminated . . . . . . (c) Copyright
(a) By the principal revoking the (d)All of the above
authority
(b) By the agent renouncing the Q 80. In a sale, if the buyer fails to pay
business of agency the price of the goods or if there is
(c) By either the principal or agent breach of contract
dying or becoming of unsound (a) The seller can sue for the price
mind. (b) The seller can only sue for the
(d)All the above damages only
(c) Both (a) and (b)
Q 73. In recent times, the law relating to (d) None of the above
sale of goods is developing through.
(a) Commercial disputes Q 81. Which of the following is without a
(b) Civil disputes conveyance?
(c) Tax and Excise cases (a) Sale
(d) None of the above (b)Agreement to sell
(c) Both (a) and (b)
Q 74. The Sale of Goods Act came in to (d) None of the above
force on
(a) 1st day of October, 1932 Q 82. Sections 8 of the Sale of Goods Act,
(b) 1st day of October, 1930 1930, is applicable when the goods
(c) 1st day of July, 1930 perished . . .
(d) 1st day of July, 1966 (a) Before sale
(b)Before sale but after
Q 75. The Sale of Goods Act is the Act agreement to sell
number . . . . . . . of 1930 (c) After sale
(a) 2 (d) None of the above
(b)3
(c) 4 Q 83 Where the valuer has been
(d) 5 fraudulent or negligent,
(a) The buyer is liable
Q 76. Transfer of actionable claims is dealt (b) The seller is liable
with in . . . . . . (c) The valuer is liable to the
(a) Sale of Goods Act party who suffered loss
(b)Transfer of Property Act (d) None of the above
(c) Contract Act
(d) None of the above Q 84. In which of the following cases
time is considered as the essence of
Q 77. A contract of sale the contract?
(a) Must of absolute (a) Where price is liable to fluctuate
(b) May be conditional (b) Where delay operates as an
(c) May be absolute or injury
conditional (c) Where the nature and necessity
(d) None of the above of the contract require it to be so
construed
Q 78. Which of the following sections of (d)All of the above
the Indian Contract Act were
repealed by the Sale of Goods Act Q 85. The terms of the contract which
1930? constitute the hard core of the
(a) Section 76 to 123 contract and it’s non-fulfilment may

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 upset the very basis of the contract (a) 6
is (b) 7
(a) Condition (c) 8
(b) Warranty (d) 9
(c) Both (a) and (b)
(d) None of the above Q 94. When did the Indian Partnership Act,
1932 come into force?
Q 86. Section 15 of the Sale of Goods Act, (a) 1.10.1932
1930 mandates that the goods shall (b) 1.10.1933
correspond to (c) 1.10.1966
(a) Description (d) 1.7.1966
(b) Sample
(c) Sample and description Q 95. Before the enactment of the Indian
(d) None of the above Partnership Act, 1932 the relating to
partnership was contained in
Q 87. Caveat Emptor means (a) The Indian Contract Act, 1872
(a) Let the seller beware (b) The Limited Liability Partnership
(b)Let the buyer beware Act, 2008
(c) Let the parties beware (c) The Sale of goods Act, 1930
(d) None of the above (d) The Companies Act, 1956

Q 88. Chapter III of the Sale of Goods Act, Q 96. Prior to the enactment of the Indian
1930 deals with Formation of the Partnership Act, 1932 law relating to
contract partnership was contained in chapter
(a) Condition and Warranties . . . . . of the Indian Contract Act,
(b) Performance of contract 1872.
(c) Effects of contracts (a) X
(b)XI
Q 89. The rules relating to transfer of (c) XII
property in specific goods are (d) XIII
contained in sections . . . . . . of the
Sale of Goods Act Q 97. Who among the following cannot
(a) 20 to 22 enter into partnership?
(b)20 to 24 (a) Married women
(c) 20 to 26 (b) A company
(d) 18 to 22 (c) Alien enemy
(d) None of the above
Q 90 The risk of loss as a rule lies on the
(a) Buyer Q 98. The right to indemnity
(b) Seller (a) Will cease on dissolution of firm
(c) Owner (b)Will not cease on dissolution
(d) None of the above of firm
(c) Depends
Q 91. Risk . . . passes with property (d) None of the above
(a) Always
(b)Prime facie Q 99. No partner should carry on any
(c) Usually business
(d) None of the above (a) Of the same nature of the firm’s
business
Q 92. A question of risk arises when the (b) Competing with the firm
goods which are agreed to be sold (c) Both (a) and (b)
are . . . (d) None of the above
(a) Lost
(b) Destroyed Q 100. All the partner are . . . . . of a firm.
(c) Damaged (a) Servants
(d)All of the above (b)Agents
(c) Employees
Q 93. The Indian Partnership Act, 1932 (d) None of the above
has . . . . . chapters.

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Q 101. The liability of a partner
(a) Ends with his death
(b)Survives even after his death
(c) Depends
(d) None of the above

Q 102. The interest of partner in his firm

means
(a) Value of share in the assets of
the firm
(b) Value of share in the profits of
the firm
(c) Both (a) and (b)
(d) None of the above

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