61. When after the formation of a valid contract, an event happens which makes the performance of contract impossible then the contract becomes
A. Void
B. Voidable
C. Valid
D. Illegal
✅ The correct answer is option A.
Business Laws
62. Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under category of
A. Mutual and Concurrent
B. Conditional and dependent
C. Mutual and independent
D. Both (a) and (b)
✅ The correct answer is option B.
63. In commercial transactions, time is considered to be of the essence of contract, and if the party fails to perform the contract within specified time, the contract becomes
A. Voidable at the option of the other party
B. Void and cannot be enforced
C. Illegal for non compliance of legal terms
D. Enforceable in higher court only
✅ The correct answer is option A.
64. The delivery of goods by one person to another for some purpose, upon a contract and that they shall, when the purpose is accomplished, be returned or otherwise disposed of by accounting to the directions of the person delivering them, then it is called:
A. Contingent contract
B. Bailment
C. Pledge
D. Contract of indemnity
✅ The correct answer is option B.
65. A, B and C jointly promised to pay Rs.60000 to D. A was compelled by D to pay the entire amount of Rs.60000. Here
A. A can file a suit against D for recovery of the amount exceeding his share
B. A is entitled to recover Rs.20000 each from B and C
C. On payment by A, the contract is discharged and B and C are also not liable to A.
D. D is not justified here and is liable to refund the entire amount to A
✅ The correct answer is option B.
66. In case of void agreements, collateral transactions are
A. Also void
B. Unenforceable
C. Not affected
D. Illegal
✅ The correct answer is option C.
67. Sometimes, a person finds certain goods belonging to some persons. In such case, the finder
A. Becomes the owner of the goods and can use them
B. Is under a duty to trace the true owner and return the goods
C. Can sell the perishable goods if true owner cannot be found
D. Both (b) and (c)
✅ The correct answer is option D.
68. A contract is made where:
A. X agrees with Y to discover a treasure by magic.
B. X bids at a public auction
C. A sees a sea
D. A sit in a public Omni bus.
✅ The correct answer is option D.
69. The basis of ‘quasi contractual relations’ is the
A. Existence of a valid contract between the parties
B. Prevention of unjust enrichment at the expense of others
C. Provision contained in section 10 of the Contract Act
D. Existence of a voidable contract between the parties
✅ The correct answer is option B.
70. A sells the goodwill of his business to B and agrees with him to refrain from carrying on a similar business within specified local limits. This contract is
A. Valid
B. Void
C. Voidable
D. Illegal
✅ The correct answer is option A.