Common Proficiency Test (CPT) Sample Questions
1. A, by letter, offers to sell his iPod to B for Rs. 20,000. Without knowing A’s offer, B, by a letter, offers to buy the same iPod from A for Rs. 20,000. Here—
(A) a binding contract comes into existence B’s letter is equivalent to acceptance of A’s offer
(B) no binding contract comes into existence as B’s letter is merely a cross offer
(C) No binding contract comes into existence as consideration is insufficient.
(D) The Indian Contract Act is silent on such issues
Ans : (B)
2. Pagrees to sell and deliver to Y 300 quintals of Rice, but only 200 quintals are delivered. Y has the rice weighed and accepts the quintals sent. Y afterward objects that the whole of the 300 quintals of Rice was not delivered and he refuses to pay for 200 quintals. Is Y‘s refusal to pay valid?
(A) Yes (B) No
(C) Partly Yes (D) None of the above
Ans : (B)
3. Which of the following statement is true?
(A) There can be a stranger to the contract.
(B) There can be a stranger to a consideration.
(C) There can be a stranger to a contract and consideration.
(D) None of the above.
Ans : (B)
4. On the valid performance of the contractual obligations by the parties to the contract—
(A) is discharged (B) becomes enforceable
(C) becomes void (D) becomes illegal
Ans : (A)
5. A party who rightfully rescinds the contract is also entitled to receive compensation from the defaulting party.
(A) True (B) Partly true
(C) False (D) None of the above.
Ans : (A)
6. Which of the following person are not competent to contract?
(A) Minor (B) Persons of unsound mind
(C) Persons disqualified by law (D) All of these
Ans : (D)
7. A minor’s liability for “Necessaries” supplied to him—
(A) Arises after he attains majority age.
(B) Is against only minor’s property
(C) Does not arise at all.
(D) Arises if minor gives a promise for it.
Ans : (B)
8. When the consent to an agreement is obtained by coercion, the agreement is voidable at the option of —
(A) either party to the agreement
(B) a party whose consent was so obtained
(C) a party who obtained the consent
(D) none of these
Ans : (B)
9. Where an agreement consists of two parts one legal and the other illegal, and the legal part is separable from the illegal, one, such legal part is—
(A) Void (B) Valid
(C) Voidable (D) Illegal
Ans : (B)
10. A contract dependent on the happening or non-happening of future uncertain event is a—
(A) uncertain contract (B) contingent contract
(C) void contract (D) Voidable contract.
Ans : (B)
11. Where the consent of a party is obtained by misrepresentation, the contract is—
(A) void (B) voidable
(C) valid (D) illegal
Ans : (B)
12. G books a ticket with Indian Airlines from Delhi to Chennai on 16th June, date of arrival being 16th July. Indian Airlines has to perform its part of contract on 16t July. This is an example of —
(A) Void (B) Illegal
(C) Unilateral (D) Bilateral
Ans : (C)
13. An essential feature of consideration is that —
(A) Is must be en cashable
(B) It must be given by the promise alone
(C) It must be at the desire or request of the Promisor
(D) It must be guaranteed
Ans : (C)
14. Illegal agreements are —
(A) Not enforceable by law
(B) Forbidden under law
(C) Either (a) or (b)
(D) Both (a) or (B)
Ans : (D)
15. A promises to supply 50 sets of Men’s suit of a particular type to B three months hence. By that time there is o demand for those suits. A & B can rescind the contract. This is called —
(A) Mutual Rescission (B) Breach
(C) Impossibility of Performance (D) Revocation of Proposal
Ans : (A)
16. Nominal Damages can be—
(A) Claimed by the aggrieved party as a matter of right
(B) Awarded only at the discretion of the court
(C) Should be specified/qualified in the contract.
(D) All of the above.
Ans : (B)
17. Which of these does not constitute Fraud?
(A) Suggestion as a fact, of something which is not true, by a person who does not believe it to be true.
(B) Active concealment of a Fact by one having knowledge or belief of the fact.
(C) Innocent statement, honestly believing the same to be true.
(D) Promise made without any intention of performing it.
Ans : (C)
18. Coercion is —
(A) The committing or threatening to commit any act forbidden by law of the Indian Penal Code
(B) The unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever.
(C) Either (a) or (b)
(D) Neither (a) or (b)
Ans : (C)
19. M offers to sell his house for N for Rs. 36 Lakhs and states in his letter that the offer would be considered if acceptance is not communicated within a certain time. Her the letter of M would —
(A) Amount to proposal
(B) Not amount to proposal
(C) Amount to a promise
(D) Amount to acceptance
Ans : (C)
20. Which of the following results in an offer?
(A) Declaration of intention
(B) An invitation to offer
(C) As advertisement offering reward to anyone who finds the lost dog of the advertiser
(D) An offer made in a joke.
Ans : (C)
21. A person is deemed to be in a position to dominate the will of another by undue influence if the mental capacity is affected temporarily or permanently by reasons of —
(A) Age (B) Illness
(C) Mental ability or bodily distress (D) All of the above
Ans : (D)
22. Which of these are opposed to public policy—
(A) Restraint of marriage
(B) Restraint of personal liberty
(C) Interference with course of justice
(D) All of the above.
Ans : (D)
23. Which of the following persons can perform the contract?
(A) Promisor alone (B) Legal Representatives of Promisor
(C) Agent of the Promisor (D) All of these
Ans : (D)
24. An anticipatory breach does not give any right to claim compensation.
(A) True (B) Partly True
(C) False (D) None of the above
Ans : (C)
25. For the purposes of entering into a contract, a Minor is a person who has not completed his age of —
(A) 16 years (B) 18 years
(C) 20 years (D) 21 years
Ans : (B)
26. A agrees to sell his act worth Rs.1, 00,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is —
(A) Void (B) Voidable
(C) Valid (D) Unlawful
Ans : (B)
27. If by agreement, a person is bound to do something which is against his personal or professional duty, or which intervenes in another’s personal or professional interest, it is —
(A) Void (B) Valid
(C) Enforceable (D) voidable
Ans : (A)
28. A and B, being traders enter upon a contract. A has private information of a change in prices which would affect B’s willingness to proceed with the contact. Is a bound to inform to B?
(A) Yes (B) No
(C) Partly Yes (D) None of the above
Ans : (B)
29. R, an optical surgeon, employs S as the assistant for a term of three years and S agrees not to practice as a surgeon during this period. This contract is —
(A) Valid (B) Void
(C) Voidable (D) Illegal
Ans : (A)
30. A agrees to pay Rs. 500 to b if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is called —
(A) Quasi contract (B) Contingent contract
(C) Wagering agreement (D) Voidable contract
Ans : (C)
31. In case of illegal agreement, the collateral agreements are —
(A) valid (B) void
(C) voidable (D) enforceable
Ans : (B)
32. Agreement, the meaning of which is uncertain is —
(A) valid (B) void
(C) voidable (D) Illegal
Ans : (B)
33. An agreement which is enforceable by law at the option of one or more of the parties there on but not at t he option of the other or others is a —
(A) valid contract (B) voidable contract
(C) void agreement (D) contingent agreement
Ans : (B)
34. The offer of Promisor to perform must be made to —
(A) the promise (B) an one of the joint promises
(C) Authorised agent(s) of (a) or (b) (D) any one of the above
Ans : (D)
35. Where the promisee has to apply to the Promisor for performance, such application should be made at a proper time and place. What is proper time and place is a —
(A) Question of fact (B) Question of law
(C) Question of general custom (D) Not a question at all
Ans : (A)
36. Novation of a contract under Indian Contract Act means —
(A) Cancellation of contract
(B) Alteration of the contract
(C) The renewal of original contract
(D) Substitution of a new contract in place of original contract.
Ans : (D)
37. The phrase “Quantum Meruit” literally means—
(A) as much as earned (B) the fact in itself
(C) a contract for the sale (D) as much as gained
Ans : (A)
38. “No consideration, No contract” is the rule of law—
(A) True (B) Partly True
(C) False (D) None of the above
Ans : (A)
39. A quasi contract —
(A) Is a contact (B) Is an agreement
(C) Has only a legal obligation (D) Is not any of these
Ans : (C)
40. In case, where a proposal and it as acceptance are not made by words and are inferred from the conduct of the parties. They are known as —
(A) Implied offers (B) Expressed Offers
(C) Specific Offers (D) General Offers
Ans : (A)
41. A contract where there is a mistake as to law of the land is voidable, when one party was induced by another.
(A) True (B) Partly True
(C) False (D) None of the above
Ans : (A)
42. Which of the following statements is true?
(A) An agreement enforceable by law is a contract
(B) An agreement is an accepted proposal
(C) Both (a) and (b)
(D) Neither (a) nor (b)
Ans : (C)
43. Which of the following is not an exception to the rule – No Consideration, No Contract?
(A) Compensation for involuntary services (B) Love & affection
(C) Contract of agency (D) Gift
Ans : (A)
44. A, B and C jointly promised to pay Rs. 90,000 to D. Before performance of the contract, C dies. Here the contract —
(A) Becomes void on C’s death
(B) Should be performed by A and B along with C’s legal representatives
(C) Should be performed by A and B alone
(D) Should be renewed between A, B and D
Ans : (B)
45. A contract is discharged by Rescission, which means the—
(A) change in one or more terms of the contract
(B) acceptance of lesser performance
(C) abandonment of rights by a party
(D) Cancellation of the existing contract.
Ans : (D)
46. Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for—
(A) Damages (B) Injunction
(C) Quantum Meruit (D) Rescission
Ans : (C)
47. When the consent of a party is obtained by misrepresentation, the contract is —
(A) void
(B) voidable
(C) valid
(D) illegal
Ans : (B)
48. Where one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by—
(A) undue influence (B) fraud
(C) coercion (D) misrepresentation
Ans : (A)
49. An agreement, which prevents a person from carrying a lawful business is—
(A) void (B) valid
(C) voidable (D) contingent
Ans : (A)
50. Agreement with a view to defraud others is—
(A) legal (B) void
(C) voidable (D) valid
Ans : (B)
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