1.

Discharge of Contract means :

a. Performing the promise by a party.
b. Discharge of obligations under a contract by a party.
c. Discharge or performance of obligations under a contract by a party to it.
d. Performing or extinguishing obligations under a contract by all
the parties.
2. A contract is discharged by novation:
a. When a new contract is substituted in place of an existing one.
b. When an existing contract is rescinded
c. When some of the conditions of the contract are changed
d. When all the parties to the contract are changed.
3. An aggrieved party can claim ordinary damages :
a. When he has suffered damages by breach of contract.
b. When the damages has arisen in the usual course of things by breach of
contract.
c. When there is a possibility if damages in the usual course of things.
d. In the case of (a) and (b) above.
4. The damages which can be awarded even if the aggrieved party has not suffered
any loss, are called :
a. Ordinary Damages
b.
Exemplary Damages
c. Special Damages.
d. Nominal Damages.
5. The claim on the basis of doctrine of quantum meruit may arise:
a. When the contract is terminated by breach.
b. When something has been done non gratuitously.
c. When the contract is divisible
d. In all of the above cases.
6. The damages which can be claimed only when the special circumstances are
communicated to the promisor are called :
a. Ordinary Damages
b. Exemplary Damages
c.

Special Damages.
d. Nominal Damages.

7. Suit for injunction means:

a. demanding the courts direction to the defaulting party to carry out the
promise according to
the term of the contract.
b. demanding court in order prohibiting a person to do a particular
act.

c. a and b both.
d. None of these.
8. In case of a wrongful dishonour of a cheque by a banker having sufficient funds to
the credit of the customer, the court may award:
a. Ordinary Damages
b.
c.

Exemplary Damages

Nominal Damages
d. contemptuous damages.

9. The party who gives the indemnity is known as :

a. indemnity-holder
b. surety
c. indemnifier
d. principal debtor
10.The liability of a surety arises, when the
a. principal debtor commits default in payment
b. creditor fails to recover anything from principal debtor
c. court directs him to pay
d. surety is reimbursed by debtor
11. A contract of indemnity is a :
a. contingent contract.
b. wagering contract
c. quasi- contract
d. void agreement

12. The right of subrogation in a contract of guarantee is available to the :

a. creditor
b. principal debtor
c. surety
d. indemnifier.

13. A person appointed to contract on behalf of another person, is known as :

a. Principal
b. agent
c. Servant
d. Contractor
14. A person appointed by the original agent to act in the business of agency, but
under the control of original agent, is known as
a. broker.
b. factor
c. commission agent
d. insurance agent.

15. For a valid ratification the principal must have contractual capacity :
a. Both at the time of the contract and at the time of ratification
b. at the time of ratification
c. at the time of contract.
d. at any time.
16. An agent is personally liable:
a. when he acts for an undisclosed principal.
b. when he acts for a named principal
c. when he acts for a principal not in existence.
d. None of above.
17.For his commission , agent has :
a. a general lien
b. no lien at all.
c. a particular lien.
d. None of above.
18. Agent makes some secret profits out of the business of agency. He loses :
a. His remuneration

b. his profits
c. not only his profits but also his remuneration
d. None of these
19. The term goods includes:
a. shares
b. harvested crops
c. old coins
d. all of the above.
20. The Sale of Goods Act came into force:
a. July 1,1930
b. July 1, 1932
c. September 1, 1930
d. June 1, 1932

21. Agreement to sell is :

a. executed contract.
b. executory contract
c. Sale
d. implied contract.

22. Sale is :
a. executed contract
b. executory contract
c. agreement to sell.
d. all of the above.
23. The following are goods as per section 2(7) of the Sale of goods Act 1930:
a. trade mark
b. goodwill

c. patent
d. all of the above
24.The consideration for the contract of sale can be :
a. in goods
b. in services
c. partly in money and partly in goods.
d. None of these
25. Under the sale of goods Act 1930, property means :
a. general property in goods.
b. special property in goods.
c. both a and b
d. None of these.
26.The goods are at 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
27.In case of breach of a condition, the buyer can :
a. claim damage only
b. repudiate the contract.
c. cannot return the goods.
d. refuse to take delivery of goods.

28. According to Sale of Goods Act, breach of condition gives rise to the right :
a. to repudiate the contract.
b. to claim damages suffered.
c. to reject the goods
d. both a and c

29. In a contract of sale of goods, breach of warranty gives rise to right :

a. to claim damages.
b. to reject the goods and claim damages
c. to reject the goods.
d. to treat the contract as repudiated.
30. The doctrine of caveat emptor means that :
a. let the seller beware
b. let the buyer beware
c. let the buyer beware and take chance.
d. let the creditor beware.
31.In case of goods sold by sample, the goods should correspond with the sample,
otherwise :
a. buyer can reject the goods.
b. buyer cannot reject the goods.
c. contract is terminated
d. seller is liable.
32.In case of breach of warranty, the buyer can :
a. refuse to pay the price.
b. repudiate the contract.
c. returns the goods.
d. claim damages only

33. Passing of property in the goods means:

a. passing of possession of the goods
b. passing of documents of title to the goods
c. passing absolute legal ownership of the goods.
d. All of the above.
34. In an unconditional contract for sale of specific goods in a deliverable state, the
property in the goods passes :

a. when price is paid

b. When contract is made
c. when the goods are delivered
d. both b and c above.
35. A person who has possession of goods, cannot sell the goods:
a. If he is mercantile agent
b. if he possesses goods under voidable contract and the aggrieved party has
rescinded the contract.
c. if he is servant having custody of the goods.
d. Both b and c above

36. Following is not a mode of delivery:

a. Quality delivery
b. constructive delivery
c. actual delivery
d. Symbolic delivery
37. Which of the following is symbolic delivery:
a. where the goods are handed over to by a seller to the buyer.
b. where the delivery of goods is effected by delivering q railway receipt
to the buyer.
c. where the seller does something which has the effect of putting the goods in the
possession bailee of the buyer.
d. above b and c.

38.Under a contract of sale of goods, the delivery of goods may be :

a. actual or symbolic
b. actual or constructive

c. actual or structural
d. any of the a and b above

39.Which of the following is constructive delivery :

a. where the goods are handed over by a seller to the buyer personally.
b. where the delivery of goods is effected by delivery a railway receipt to the buyer.
c. where the seller physically delivers the goods to any person authorized by the
buyer.
d. where the seller does something which has the effect of putting the
goods in the possession the bailee of buyer.
40. According the sale of Goods Act, an unpaid seller is one who has not been paid :
a. part of the price
b. whole of the price
c. substantial part of the price.
d. any one of the above.
41. A seller is not an unpaid seller:
a. when he sells the goods on credit and the term of credit has not expired.
b. when he refuses to accept valid tender of price.
c. when buyer has validly rejected the goods.
d. in anyone of the above cases.
42. An unpaid seller can exercise his lien :
a. When he is in the possession of goods.
b. when he has delivered the goods to a carrier without reserving the right of
disposal.
c. when he has sold the goods on credit.
d. when buyer obtains the possession of the goods.
43. When the property in the goods has passed to the buyer, the rights of unpaid
seller are :
a. right of lien on goods.
b. right of stoppage of goods in transit.

c. right of resale of the goods.

d. as stated in clause a,b and c

44. Right of stoppage of goods in transit can be exercised:

a. only when the price remains unpaid even on the expiry of credit period allowed
and the buyer is solvent.
b. only when the buyer becomes insolvent.
c. even if the carrier holds the goods as sellers agent.
d. even if the carrier holds the goods as buyers agent.
45. Right of stoppage in transit can be exercised :
a. only by taking actual possession of goods.
b. only by giving notice of his claim to the carrier on other bailee who possess the
goods.
c. either of the ways state in (a) and (b)
d. None of these.

46 An unpaid seller has :

a. Unlimited right to resell the goods
b. Limited right to resell the goods
c. Can expressly reserve the right of resale of the goods in the contract in case of
non-payment by buyer.
d. Both b and c above
47 An advertisement to sell the goods by auction is
a.
b.
c.
d.

An offer to sell.
An invitation to make an offer to buyer.
Awareness to buyer
None of these.

48.In case of resale of goods by seller without notice :

a. the new buyer (who buys in resale) will get a good title.
b. the unpaid seller has right to recover the loss on resale.
c. original buyer has no right to recover the profit on resale.

d. None of these.
49. Notice of Resale by seller must be given :
a. irrespective of the nature of goods.
b. where the seller has expressly reserved the right to resale.
c. where the unpaid seller has exercised his right of lien or stoppage in
transit.
d. None of these.

50. An unpaid seller can exercise his right of stoppage of goods in transit :
a. by giving notice of his claim to the carrier who is in possession of the goods
b. by taking actual possession of the goods
c. by notice of his claim to the bailee who is in possession of the goods,
d. Either a or b or c