Model Papers: Indian Contract Act Preliminary Model Paper 8

Q.1. The principle of agency of necessity is

  1. applicable hi emergent situations where communication with the principal is not possible
  2. applicable in normal situations if the communication with the principal is possible
  3. unknown to the law of agency
  4. None of the above

Q.2. A gives woolen cloth to B, a tailor, for making a suit. The tailor's charges are settled at Rs. 500. After the suit is ready, A tenders Rs. 500 for the charges but the tailor refuses to deliver the suit till A pays an old due. In such case

  1. B can refuse to deliver the suit
  2. B cannot refuse to deliver the suit
  3. B can refuse in certain circumstances
  4. B can sell the suit

Q.3. Which of the following is correct?

  1. Pledge made by a person having a limited interest is valid to the extent of that interest
  2. Pledge made by a person under voidable contract is valid
  3. Pledge made by a mercantile agent is valid
  4. Goods may be pledged by the servant in the absence of owner

Q.4. Promissory estoppel is sometimes spoken of as a substitute for

  1. novation
  2. quasi-contract
  3. consideration
  4. coercion

Q.5. X, a trader, leaves goods at Y's house by mistake. If Y uses the goods, then which one of the following is correct when X demands the price of goods and Y refuses to pay?

  1. Y is not bound to pay as he becomes the owner of the goods left at his home
  2. Y is bound to pay as X did not intend to supply goods gratuitously and Y enjoyed the benefits of X's act
  3. Y is not bound to pay as he did not ask for the goods
  4. X must suffer for his mistake and he cannot recover the price of goods from Y