Legal IQ


1. According to section 16(1), Indian Contract Act: “A contract is said to be induced by “undue influence” where the ………………..between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.”

(a) relations subsisting
(b) relations
(c) fiduciary relations
(d) associations.

2. A person is deemed to be in a position to dominate the will of another

(a) where he holds an apparent authority over the other
(b) where he holds a real authority over the other
(c) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness or mental or bodily distress
(d) all of the above.

3. ‘C’ let a music hall to ‘X’ for a series of music concerts for certain days. The hall was completely destroyed by fire before the scheduled date of concerts. In this case

(a) ‘C’ cannot be discharged from performance of the contract
(b) the contract becomes voidable at the option of ‘X’
(c) the contract is discharged by impossibility of performance
(d) the contract is void ab initio.

4. When any person enters into any bail – bond, recognizance, etc. or under the provision of any law or under the Government’s order, gives any bond for the performance of any public duty/act, he shall be liable upon breach to pay

(a) the sum as considered reasonable by the court
(b) the whole sum mentioned therein
(c) Either (a) or (b)
(d) None of the above.

5. Which one of the following is a contingent contract?

(a) ‘A’ insures his factory against damage or destruction by fire
(b) ‘A’ sells his property subject to the condition that the property will be reconvened to him on repayment of price with interest
(c) A guard is appointed at a swimming pool for the sole purpose of rescuing drowning persons
(d) A borrower solemnly promises to pay off the lender when the borrower will be in funds.

6. The remedy/remedies for breach of contract provided under the Indian Contract Act is/are

(a) Injunction
(b) Damages
(c) Specific performance
(d) All of these.

7. Exceptions to the doctrine of ‘privity of contract’ do not include………………… .

(a) beneficiaries under a charge
(b) equitable mortgage
(c) estoppel
(d) marriage settlement.

8. ‘V’ places an order with ‘S’ for the supply of 20 sewing machines. ‘S’ could not supply these in time. ‘V’ loses a profitable contract due to this (a fact that was not communicated to ‘S’) and claims his loss of profit from ‘S’. But ‘V’ does not succeed as the nature of the damage is:

(a) foreseeable
(b) remote
(c) ordinary
(d) special.

9. The loss or damage arising from a breach of contract has to be ascertained

(a) at the date of the breach of contract
(b) at the time of making of contract
(c) at the discretion of Court
(d) none of the above.

10. A person, who sues for damages, under the law of contract

(a) has a duty to mitigate the loss consequent upon the breach of contract
(b) has no duty to mitigate the loss consequent upon the breach of contract
(c) can claim damages for the sum inclusive of the amount of loss due to his negligence
(d) has entire discretion in the matter.

11. Money paid under mistake or coercion is recoverable if there is

(a) mistake of law
(b) mistake of fact
(c) both (A) and (B) are correct
(d) none of the above.

12. Hadley v. Baxendale is a leading case on

(a) Anticipatory breach
(b) Remoteness of damages
(c) Breach of implied terms
(d) All of these.

Answers: 1.(a), 2.(d), 3.(c), 4.(b), 5.(a), 6.(b), 7.(b), 8.(d), 9.(a), 10.(a), 11.(c), 12.(b)

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