Practice Test


1) The proposal given by one party to another which enter into legal binding of 'to do or not to do 'any thing is a


2) Acceptance on telephone is complete:


3) A, by a letter dated 10th January 2008, offers to sell his house to B for Rs 10 Lakhs. The letter reaches B on 17th January. B sends his acceptance on 18th January 2008 which reaches A on 25th January, Here, he communication of offer is complete on :


4) Raj offers to sell his car via internet to Kumar, It is a :


5) Agreement to sell


6) A counter offer is ---------


7) The offer lapses when the offeree :


8) The offer lapses by the death of offeror, if the fact of the death comes to the knowledge of offeree :


9) An acceptance is not according to the mode prescribed, but the offeror decides to keep quite. In such a case, these is :


10) A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission There is :


11) Communication of an offer may be by:


12) Under Section 2 (c) of Indian Contract Act, Promisor is the person:


13) The acceptance of an offer, in ignorance of the fact of death or insanity of the offeror, is:


14) If the offeree has acceptance in ignorance of death of offeror it is a :


15) "Holiday Packages" announced as an advertisement are an example of ____


16) If A offers B to buy his scooter for Rs.5,000only when B sells his bicycle to him for Rs.500, B accepted to buy A's scooted but does not sell his bicycle. It is an :


17) In telephonic conversation, the acceptance is completed when :


18) When the acceptance is given on telephone or fax, the place of contract is :


19) X offer to sell to his house to Y for Rs. 10 lakhs and states in his letter that the offer would be considered as accepted if acceptance is not communicated, within a certain time. Here, the latter of X would :


20) The offeror becomes bound only when :


21) B's son is lost. A goes in search of B's son. Meanwhile, B makes an offer to pay Rs.1,000 to the finder of his son. A finds B's son. Can A claim Rs. 1,000 from B?


22) M/s Law Book Company made an offer to sell a new law book released recently only to the members bar Council. This offer is called :


23) where the seller is bound to send the goods to the buyer as per the agreement , & there is no specific time limit goods shall be delivered within


24) A, by a letter dated 15th March ,offer to sell his car to B, who posts his acceptance on 20th march ,here


25) A, by a letter ,offer to sell his mobile to B,for Rs.20,000.without knowing A's offer ,B ,by a letter ,offers to buy the same mobile from A for Rs.20,000 ,Here


26) in case of illegal agreement the collateral agreement are


27) when goodwill of the firm is sold ,the partners agree with the buyer ,not to carry out similar business specified period or within the specific local limits .this agreement is restraint is valid provided the restriction imposed are


28) an acceptance must be


29) The offer of promiser to perform must be made to


30) An offer accepted without knowledge does not confer any legal on the acceptor


31) Boarding the bus running in a route to carry passengers is :


32) Which of the following is an invitation to offer ?


33) Silence constitute a valid acceptance only if


34) Which of the following condition is not necessary for a valid offer ?


35) Which of the following is an offer ?


36) Where a letter of acceptance sent by the post is lost in transit there is


37) Display of goods in the shop for sale with price tags in Big Bazaar where self system is allowed is:


38) No contract can arise ,if the


39) Communication of a person is complete when it comes to the knowledge of the person to whom it is made


40) The finding that the business of the firm cannot be carried on except at a loss ,is a sufficient ground for the court to order


41) X offered to purchase shares in a company by writing a letter on 1st may .The co.allotted shares on 1st Nov. of that year .X refused the shares ,is X's action valid ?


42) In case of acceptance on phone ,the contract is made at the place


43) The term Proposal used in the Indian contract act is synonymous with the term


44) All agreement of champerty or maintenance are not illegal in India


45) The juristic concept of contract consist of


46) When the offers made by two persons to each other containing similar terms of bargain cross each other in past,they are known as


47) An advertisement to pay reward to anyone who traces the missing boy of the advertiser is :


48) A general offer made to the public at large is valid ,& binding contract is made with a person who having the knowledge of the offer


49) Communication of the offer & acceptance can be made only when the parties are face to face


50) Quotation of price is a


51) L offered to take a house on lease for a period of 3 years at Rs.1 lakh p.a if the house was 'put through repairs & rooms were handsomely decorated'.here there is no offer since


52) 'CONSENSUS -AD-IDEM" means


53) Death of offeree before acceptance terminates the offer


54) In a self-service department store ,a valid contract is concluded by offer & its acceptance ,when


55) Which of the following results in an offer


56) An offer to be valid must be communicated to the person to whom it is made


57) X owes Rs.500 to his friend Y .Y assures X that he will not file a suit against X . Does this assurance of Y constitute 'a valid Proposal' in legal sense of term ?


58) A promise to paint a picture for B .B afterwards forbids him to do so .in such case


59) M offers to sell his car for Rs.3.8 lakhs to N.N says he would buy it for Rs.3.5 lakhs.This is a case of


60) An offer is made to Mr.Zak in a crowd,It :


61) Which of the following is false ? An offer to be valid must


62) Which of the following is false? An acceptance


63) The offer may lapse :


64) A proposal when accepted becomes


65) On the acceptance of an offer by offeree


66) A, by a letter dated 25th December ,1998 ,offers to sell his house to B for Rs.10 lakhs.The letter reaches B on 27th December ,1998 , who posts his acceptance on 28th December,1998 which relates A on 30th december,1998.Here the communication of offer is complete on


67) A, by a letter dated 25th December ,1998 ,offers to sell his house to B for Rs.10 lakhs.The letter reaches B on 27th December ,1998 , who posts his acceptance on 28th December,1998 which relates A on 30th december,1998. , the communication of acceptance is complete against A on 28th December , 1998 , and against B on


68) When offer is made to a definite person, it is known as


69) Standing offer means:


70) When the offeree offers to qualified acceptance of the offer subject to modification & variations he is said to have made a


71) Communication of an offer is complete When :


72) Which of the following is /are the essential elements of a valid offer ? 1. Offeror must have an intention to be bound by his offer. , 2. Offer must be made to a specific person /party & not to public at large , 3. Must be definite , 4. Offer can be vague


73) Which of the following offers do not constitute a valid offer ? 1. An auctioneer displays a T.V.sets before a gathering in an auction sale. , 2. Ram who is in possession of three cars purchased in different years say's 'I will sell you a car' , 3.A says to B , 'Will you purchase my motor cycle for Rs.20,000 ? , 4. Ram communicates to shyam that will sell his car for Rs.1,50,000


74) An auctioneer in Delhi advertised in a newspaper that a sale of office furniture would be held on Jan 4th,2012 . A broker came from Chennai to attend the auction,but the sale of furniture was withdrawn.The broker from Channai sued the auctioneer for loss of his time & expenses.Which of the following statements is correct ?


75) In case of general offer, for a valid contract, the acceptor :


76) An offer made to the group of people is known as a :


77) Cross offers by two parties to each other :


78) A proposal may consist of a promise for :


79) An Agreement is


80) An ad for season end sale is


81) The person making the proposal is called the :


82) When a person invites the other party to make an offer, he is said to make an :


83) An offer can be accepted by :


84) Performance of conditions of an offer; for the accptance of any consideration of a recipocal promise which may be offered with a proposal,is a/an


85) The communication of proposal is deemed to be made by


86) the communication of the acceptance of proposal is deemed to be made


87) the communication of the revocation of proposal is deemed to be made


88) The offer is completed only when it has been communicated to the :


89) Communication of an acceptance is complete as against the proposer:


90) An offer comes to an end after the expiry of :


91) An offer can be revoked at any time before it is accepted by the.


92) An acceptace can be revoked at any time before its communication reaches the :


93) Anil makes an offer to Sunil to 20th by a letter which reaches Sunil on 22nd. Sunil posts the letter of acceptance on 24th which reashes Anil on 27th. The communication by acceptance is complete for Sunil on :


94) Titu, by a letter dated 4th Jan. 2012 offers to sell his house to Tinu for Rs. 20 lakh. the letter reaches Tinu on 6th Jan., 2012, who posts his acceptance on 7th Jan., 2012. It reaches Titu of 9th Jan., 2012. Here, Tinu us bound by his acceptance.


95) Titu, by a ltter dated 4th Jan., 2012 offers to sell is house to Tinu for Rs. 20 lakh.The letter reaches Tinu on 6th Jan., 2012, who posts his acceptance on 7th Jan., 2012 It reaches Tinu on 9th., 2012 Here, the communication of offer is complete on :


96) A revokes his proposal to B by telegram The revocation is complete as against A


97) A revokes his proposal to B by telegram The revocation is complete as against B


98) On the 5th of month X markes an offer to Y, by a letter which reaches to Y on 6th. On the 7th , Y posts his letter of acceptance. Mean While, on the 6th X posts a letter to Y revoking the offer . On seeling it, y immediately sends a telegram to X on the 8th confirming the acceptance given though his letter of the 7th. Discuss the legal effects to three letters and the telegram.


99) Titu, by a letter dated 4th Jan., 2012 offers to sell his house to Tinu for Rs. 20 lakh.The letter reaches Tinu on 6th Jan., 2012, who posts his acceptance on 7th Jan., 2012. It reaches Titu on 9th Jan., 2012. Here , Tinu is bound by the offer on :


100) The offeror has right to revoke or withdraw his offer any time :


101) A sends a letter to B, offering to sell house property. He asks B to reply by telegram. If B accept by registered letter, and does not insist acceptance by telegram within a reasonable time, the contract is :


102) An offer was sent by post, the Acceptor wrote "Accepted" On the letter , put it in his drawer & fogot about it. The transaction is :


103) M offered to sell his land to N for Rs. 70 lakhs. N replied purporting to accept and enclosed Rs. 20 lakhs, promising to pay the balance of Rs. 50 lakhs by monthly installment of a Rs. 10 Lakhs each. In thise case :


104) A proposal is revoked


105) A proposal may be revoked


106) An offer may be :


107) The term 'prima-facia' means :


108) An advertisement to sell goods by auction by :


109) An offer is defined under Sec.--------------


110) Terms of an offer must be :


111) An offer is :


112) Section ________ of Indian Contract Act states that " performance of the conditions of a proposal is an acceptance of the proposal".


113) A "promise " is defined under section------------


114) Acceptance means given consent to :


115) K, an actrees was engaged for a tour, The agreement provided that if the paty went to London, K would be engaged at a salary to be mutually agreed between them. I such a case :


116) An offer which can be accepted by anyone is called :


117) Words like,"See Back for Conditions" ,"please Turn Over", "Subject to term and condition contained in Annexure", Are sufficient for a reasonable notice of special conditions to the Acceptor.


118) M offered of monday to sell his property to N by a writtin proposal which stated " that this offer to be left open until saturday 10 a.m. " In the meantime on Wednesday. M enters into a contract to sell the property to O. N. who was setting in the next room, hears about the deal between the M and O.On friday, N accepts the offer and delivers to M letter of acceptance Is N's acceptance valid ?


119) M offered to sell his car for Rs.3.8 lakhs to N says he Would buy it for Rs. 3.5 Lakhs. The Counter -Offer by N for Rs.3.5 Lakhs.


120) A promises to deliver his watch to B and, in return, B promises to pay a sum of Rs. 2,000. There is said to be a/as.


121) If a person perform some act intended by promiser as consideration for the promise offered by him, performance of such act constitutes:


122) Mr. L offered to take a house a lease for a period of 3 years at Rs. 1 lakh. p.a. if the house was" put through repairs and were handsomely decorated". Here, there is no offer since:


123) Which of the following is not an essential element of a valid acceptance ?


124) An agreement consists of reciprocal promises between at least


125) A invites B for his son's wedding. B accepts the invitation . In this case, there is a/an


126) A bid at an action sale is :


127) A mere passing utterance will:


128) M offers to sell his house to N for Rs.36 Lakhs and states in his letter that the offer would be considered as accepted if acceptance is not communicated within a certain time. Here,the letter of M would :


129) Which of the following conditions is not necessary for valid offer?


130) Nearness of relation by itself


131) Silence cannot amount to offer by conduct.


132) Yaatra Travels operates buses from Delhi to Agra. The bus standing at its Bay in the Bus Terminus is with a view to taking the passengers. There is ……… to take passengers.


133) One person wants to travel from Tirupathi to Chittgong. The bus travelling from Tirupathi to Chittgong comes to the bus station, it is an


134) A wants to go to his home at Delhi from his place of employment. He travels by bus as there is an air bus belonging to Chandra travels pvt. Ltd. which is standing at bus stand waiting for passengers. Here is


135) A bid at an auction sale is -


136) An offer which is allowed to remain an offer for acceptance over a period of time is known as -


137) An offer made to a - (i) Specific person; or (ii) a group of persons is known as -


138) An offer made to the public at large is called as -


139) M/S Law Book Company offered Books only to ICAI Council members. This Offer is generally known as -


140) K advertises in paper that any person who found his lost pet dog can get a reward of ? 5000. Any person who finds the dog can claim the reward. This is a case of -


141) A person advertised in newspaper to sell his old car. Then the offer is ______


142) A Company announced a reward of £100 to anyone who contracted influenza after using its Smoke Balls for a certain period. Mrs. C used the Smoke Balls but contracted influenza. She claimed the reward but the Company rejected her claim stating that she did not communicate her acceptance to the Company. Here -


143) L offered to take a house on lease for a period of 3 years at ? 1 Lakh p.a. if the house was "put through repairs and rooms were handsomely decorated". Here, there is no offer since -


144) M offers to sell his house to N for ? 36 Lakhs and states in his letter that the offer would be considered as accepted if acceptance is not communicated within a certain time. Here, the letter of M would -


145) ---------- precedes offer purpose of which to get a better offer from parties.


146) ………. is expression of initial intention.


147) ………. is expression of final willingness to perform a promise.


148) An offer is made with an intention to have negotiation from other party. This type of offer is -


149) In a self-service departmental store, customers' pickup articles and take them to the cashier's desk to pay. The Customer's action in picking up particular goods is a / an -


150) Notices of Tender in newspapers by Government or other bodies are -


151) Goods displayed in a shop with a price label is -


152) Which of the following is valid offer?


153) A Tender will be irrevocable where -


154) There is a Counter-Offer when -


155) When two persons make identical offers to each other, in ignorance of each other's offer, it is called -


156) When both parties exchanged identical offers, such offers are known as


157) In case of a Counter Offer or Cross Offer, one person's offer can be taken as an Offer and the other person's Offer can be taken as its acceptance.


158) When there is a Counter Offer, the original offer terminates.


159) M offers to sell his car for ? 3.8 Lakhs to N. N says, he would buy it for ? 3.5 Lakhs. The Counter-Offer by N for ? 3.5 Lakhs -


160) A offers B to supply Books at ? 100 each. B accepts the same with condition of 10% discount. It is ______.


161) When the proposal or acceptance is made otherwise than in words, the promise is said to be -


162) S offered a reward to anyone who has returned his lost dog. F brought the dog to S without having heard of the offer. F is not entitled to the reward since -


163) S sent his servant L, to trace his missing nephew. Later, S offered a reward for anyone who found out his missing nephew. L, ignorant of the announcement, traced the boy. Subsequently, he claimed the reward, when he came to know of it.


164) S sent his servant L, to trace his missing nephew. Later, S offered a reward for anyone who found out his missing nephew. L, ignorant of the announcement, traced the boy. Subsequently, he claimed the reward, when he came to know of it. L is not entitled to the reward since -


165) X is a person of 16 yrs. He enters into a contract with Y by making false representation that he is a major, This contract is:


166) Which of the following is not correct?


167) B received an offer by letter. He gives his acceptance by letter which are duly stamped, addressed & put in the letter box, This amount to


168) A, by a letter dated 10th January 2018, offers to sell his house to B for ? 40 Lakhs. The letter reaches B on 17th January 2018, who posts his acceptance on 18th January 2018 which reaches A on 30th January 2018. Here, the communication of offer is complete on:


169) In the above question, the communication of acceptance is complete against A on 18th January 2018 and against B on


170) Communication of acceptance is complete as against the Proposer -


171) Communication of acceptance is complete as against the Acceptor, only -


172) M agreed on Monday to sell his property to N by a written agreement which stated "that this offer to be left open until Saturday 10 a.m." In the meantime on Wednesday, M enters into a contract to sell the property to O. N, who was sitting in the next room, hears about the deal between M and O. On Friday, N accepts the offer and delivers to M the letter of acceptance. Is N's acceptance valid?


173) On the face of a ticket for a journey, the words, "For conditions see back" are printed in small print. The passenger -


174) An agreement to agree in future is -


175) A proposal may be revoked by the proposer before the posting of the letter of acceptance by the acceptor.


176) If an offer is made in the form of a promise in return for an act, the performance of that act even without any communication thereof, is to be treated as an acceptance of the offer.


177) Counter offer to an offer does not make the original offer lapse.


178) If the offeree does not accept the offer according to the mode prescribed by the offeror, the offer does not lapse automatically.


179) Communication of an offer is complete when the letter is posted though it has not reached the person to whom the offer is made.


180) Where the mode of acceptance is prescribed in the proposal, it need not be accepted in that manner.


181) The proposal should always be communicated to the person to whom it is made.


182) A tender does not amount to an offer.


183) Communication of acceptance of an offer is complete as against the acceptor the moment it comes to the knowledge of the offeror.


184) Offer may be revoked after the letter of acceptance is posted by acceptor.