Multiple Choice Questions:
1. Promises forming consideration for each other are known as —
(a) independent promises. (b) dependent promises.
(c) reciprocal promises. (d) mutual promises.
Ans: (c) reciprocal promises.
2. Each party is a promisor and a promisee in case of —
(a) past consideration. (b) present consideration.
(c) every contract. (d) reciprocal promises.
Ans: (d) reciprocal promises.
3. When the promisee refuses to accept performance from the promisor who offers to perform, it is —
(a) attempted performance. (b) vicarious performance.
(c) tender. (d) frustration of contract.
Ans: (a) attempted performance.
4. Sale of goods for cash is an example of —
(a) mutual and independent promises. (b) mutual and dependent promises.
(c) mutual and concurrent promises. (d) conditional and dependent promises.
Ans: (c) mutual and concurrent promises.
5. When a party to a contract transfers his contractual rights to another, it is known as —
(a) rescission of contract. (b) waiver of contract.
(c) discharge of contract. (d) assignment of contract.
Ans: (d) assignment of contract.
6. When two or more persons have made a joint promise, then unless a contrary intention appears from the contract, all such persons must fulfil the promise— ~
(a) jointly. (b) severally. (c) jointly and severally. (d) jointly or severally.
Ans: (a) jointly.
7. Assignment by operation of law takes place—
(a) by the mutual consent of the parties. (b) by the will of either party.
(c) when the subject matter of a contract ceases to exist. (d) by the death of a party to a contract.
Ans: (d) by the death of a party to a contract.
8. A who owes ₹10,000 to B dies leaving an estate of ₹6,000 The legal representatives of A are—
(a) liable for ₹10,000. (b) liable for ₹6,000.
(c) not liable at all. (d) liable for ₹3,000.
Ans: (b) liable for ₹6,000.
9. Owing to a strike in the factory of A, he is not able to supply the goods to B as per the terms of the agreement. The agreement in such a case—
(a) is discharged. (b) is not discharged.
(c) becomes void. (d) is voidable at the option of A.
Ans: (b) is not discharged.
True or False Questions:
1. A tender of an instalment when the contract stipulates payment in full is a valid tender. [False]
2. A contract need not be performed if the promisee refuses to afford the promisor reasonable facilities for the performance of his promise. [True]
3. If any one of the joint promisors makes default in the contribution, the remaining joint promisors must bear the loss arising from such default in equal shares. [True]
4. A promisor undertakes to perform a promise on a certain day, after the application by the promisee to the effect. It is the duty of the promisee to apply for performance at a proper place and within the usual hours of business. [True]
5. Promises which form the consideration or part of the consideration for each other are called contingent promises. [False]
6. In a contract in which time is of the essence of the contract, if the promisor fails to perform his obligation within the fixed time, the contract becomes void. [False] ~
7. A debtor expressly intimates at the time of payment that the payment should be applied towards the discharge of a particular debt. The creditor is not bound to do so. [False]
8. Contractual obligations involving personal skill cannot be assigned. [True]
9. A promisee can be compelled by the promisor or a third party to accept any person other than the promisor as the person liable to him on the promise. [False]
10. Where the parties have a current account between them, appropriation impliedly takes place in the order in which the receipts and payments take place and are carried into the account. [True]
11. In mutual and independent promises, one party must perform his promise before the other party can be called upon to fulfil his promise. [False]
12. The mere fact that a certain time is specified in a contract for the performance of a promise does not necessarily make time as the essence of the contract. [True]
13. In non-commercial contracts, the presumption is that time of the essence of the contract. [False]
14. Where a debtor makes a valid tender of money, but the creditor refuses to accept it, the debtor is discharged from making the payment. [False]
15. When two or more persons make a joint promise and there is no express agreement to the contrary, the promisee may compel any one or more of the joint promisors to perform the whole of the promise. [True]
16. A release by the promisee of any one of the joint promisors does not discharge the other joint promisors from liability. [True]
17. Where the debtor does not intimate, the creditor has the right to appropriate payment to a timebarred debt. [True]