Legal Aptitude MCQs – Commonly Asked Questions for Exams – Must Know Topics and Concepts Part 5

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31. Legal Principle Agreement void the — Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement the agreement is void.

Explanation - An erroneous opinion as to the value of the thing which forms the subject-matter of the agreement, is not to be deemed a mistake as to a matter of fact.

Factual Situation A agrees to sell to B a specific of goods supposed to be on its way from England to Bombay. It turns out that, before the day of the bargain the ship conveying the cargo had been cast away and the goods lost. Neither party was aware of these facts. The agreement is void.

Where both the parties are under mistake as to matter of fact, the contract under Section 20 is

a) voidable

b) void

c) valid

d) illegal

Ans: (b)

32. Legal Principle Voidability of agreements without free consent - When consent to an agreement is caused by coercion, fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.

A party to contract, whose consent was caused by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed, and that he shall be put in the position in which he would have been if the representations made had been true.

Factual Situation A, intending to deceive B, falsely represents that five hundred mounds of indigo are made annually at A’s factory, are thereby induces B to buy the factory. The contract is voidable at the option of B.

When the consent is caused by misrepresentation the contract under Section 19 is

a) valid

b) void

c) voidable

d) illegal

Ans: (c)

33. Legal Principle Agreement in restraint of trade, void Every agreement by which any one is restrained from exercising a lawful profession, trade, or business of any kind, is to that extent void.

An agreement in restraint of trade is valid under Section 27 if relates to

a) sale of goodwill

b) mutual adjustment

c) business contingency

d) None of the above

Ans: (a)

34. Legal Principle Agreement in restraint of marriage, void - Every agreement of the marriage of any person, other than a minor, is void.

An agreement in restraint of marriage under Section 26 is

a) void

b) voidable

c) valid

d) unenforceable

Ans: (a)

35. Legal Principle Agreement void, if considerations and objects unlawful in part- If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful, the agreement is void.

Factual Situation A promises to superintend, on behalf of B, a legal manufacturer of indigo, and an illegal traffic in other articles. B promises to pay to A salary of ₹ 10000 a year. The agreement is void, the object of A’s promise, and the consideration for B’s promise, being in part unlawful If only a part of the consideration or object is unlawful, the contract under Section 24 shall be

a) valid to the extent the same are lawful

b) void as a whole

c) void to the extent the same are unlawful

d) valid as a whole

Ans: (b)

36. Legal Principle Agreements void for uncertainty - Agreement, the meaning of which is not certain, or not capable of being made certain, is void.

Factual Situation A agrees to sell B ‘a hundred tons of oil’. There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.

Agreements, the meaning of which is not certain of not capable of being made certain under Section 29 is

a) void

b) illegal

c) valid

d) voidable

Ans: (a)

37. Legal Principle ‘Contingent contract’ defined - A ‘contingent contract’ is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.

Factual Situation A contract to pay to B ₹ 10000 if B’s house is burnt. This is a contingent contract.

A contract based on the happening or non-happening of a future event under Section 31 is called

a) a contingent contract.

b) a contract marked with uncertainty and hence void

c) a wagering contract

d) None of the above

Ans: (a)

38. Legal Principle Agreement to do impossible act - An agreement to do an act impossible is void.

Contract to do act afterwards becoming impossible or unlawful - A contract to do an act which, after the contract is made, becomes impossible, or by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. Compensation for loss through. Non-performance of act known to be impossible or unlawful- Where one person has promised to be something which he knew, or with reasonable diligence, might have known, and which the promisor did not know, to be impossible or unlawful, such promisor must make compensation to such promise for loss which such promise sustains through the non-performance of the promise.

Factual Situation A agrees with B to discover treasure by magic. The agreement is void.

An agreement to do an act impossible under Section 56 is

a) void

b) valid

c) voidable

d) unenforceable

Ans: (a)