1) A , who is a dealer in coconut oil only , agrees to sell to B 'one hundred tons of oil' . The nature of A's trade affords an indication of meaning of the words. It is a :

A) A valid contract

B) An illegal contract

C) A void contract

D) All of the above

Answer : A

2) Consider the following statements :

1. A written and registered agreement based on natural love and affection between near relatives is enforceable without consideration .

2. An agreement to which the promisor is freely given is not valid merely because the consideration is inadequate.

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Answer : C

3) Section 30 of Indian contract Act ,1872 shall not be deemed to render unlawful a subscription or contribution, or agreement to subscribe or contribute, made or entered into for or toward any plate, prize or sum of money, of the value or amount to be rewarded to the winners of hours race .

A)  Five hundred rupees or upwards

B) Seven hundred rupees or upwards

C) Four hundred rupees or upwards

D) Hundred rupees or upward

Answer : A

4) Which one of the following observation is most appropriate of the given problems " A agrees to service B as his house keeper and also to live in adultery with him at a fixed salary of ₹ 4000 per month .

A ) The agreement is void as a part of it is lawful and other part unlawful .

B) The agreement is lawful as adultery does not amount to an offence.

C) The agreement is void as the lawful portion is not severable from unlawful portion

D ) The first portion of the agreement being lawful is a contract whereas the later proportion is void.

Answer : C

5) Which one of the following statement is correct when A agrees to let her daughter for hire to B for concubinage ?

A) The agreement is void because it is immoral

B) The agreement is void because the consent of daughter has not been obtained.

C) The agreement is valid because there is free consent of the contracting parties

D) The agreement is Voidable at the instance of A .

Answer : A

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