CMS for CA/LKPL 2015
Test 3
Consideration:
1. Consideration is
a. Doing or abstaining from doing
something at the desire of the
promisor
b. Essential condition of a contract
c. Element of exchange in a a contract
d. All the above
2. If there is no consideration then the
agreement is
a. Void
b. Valid
c. Illegal
d. Voidable
3. Consideration must be --a. Adequate
b. Superficial
c. Unlawful
d. Something in return
4. A valid consideration includes --a. Executed consideration
b. Executory consideration
c. Present consideration
d. All of these
5. A valid consideration has the following
essential elements
a. It must move at the desire of the
promisor
b. Consideration may be supplied by
Promisee or any other person
c. Consideration may be past, present,
or future
d. All of these
6. Consideration in Indian law context;
a. Past only
b. Present only
c. Future only
d. All the three
7. The exception to doctrine of privity of
contract include
a. Family settlements
b. Agreements
c. Assignment
d. All of these
8. The latin term quid pro quo indicates
a. Something in return
b. Anything in return
c. Everything in return
CPT law – by babu rayipudi
d. All things in return
9. A stranger to the consideration can file
a suit and such a stranger is
a. A person who has given
consideration
b. A person who is not a party to the
contract
c. A person who has not given
consideration
d. A person who is a party to the
contract
but
not
given
consideration
10. If consideration is inadequate the
agreement would be
a. Void
b. Voidable
c. Illegal
d. Valid
11. A promise to pay time barred debt
must be
a. Oral
b. Written and signed
c. Registered
d. Written and registered
12. Which of the following statement is
not true
a. Consideration must be real and not
illusory
b. Consideration may be inadequate
c. Past
consideration
is
no
consideration
d. Consideration should not consist of
a legal obligation
13. According doctrine of privity of
contract:
a. Only interested party can file a suit
b. Anyone can file a suit
c. A stranger can file a suit
d. One can file a suit only when he is
party to the contract
14. The exceptions to the rule a stranger to
a contract cannot sue are
a. Beneficiaries in the case of trust
b. Family settlement
c. Assignment of contract
d. All the above
15. A stranger to a consideration
a. Can file a suit
b. Cannot file a suit
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c. Can file, only with the consent of
court
d. Is similar to stranger to contract
16. A stranger to contract --a. Can file a suit
b. Can file a suit if contract is in
writing
c. Can file suit, only with permission
of court
d. Cannot file a suit
17. An agreement not supported by
consideration is called:
a. Consensus ad idem
b. Ignoratia juris non execuset
c. Ab initio
d. Nudum pactum
18. Past consideration means ---a. Money received in the past without
making even a proposal
b. The price which is more than the
promisee’s expectation
c. A past act done before the promise
is made
d. None of the above
19. An agreement without consideration is
void except in case of compensation
for
a. Voluntary services rendered
b. Voluntary services rendered at the
request of the other party to the
agreement
c. Voluntary services rendered at the
request of third person
d. Reimbursement
of
expenses
incurred.
20. A contract without consideration is
void. There are exceptions which one
of the following exceptions is correct?
a. Promise to pay disputed debt
b. Promise to pay time barred debt
c. Promise to pay time barred debt
which is in writing and signed
d. Promise to pay any debt
21. Which of the following statements is
incorrect with regard to nature of a
valid consideration?
a. Consideration must be adequate
b. Consideration must be real
c. Consideration may be past, present
or future
CPT law – by babu rayipudi
d. Consideration must move at the
desire of promisor
22. Which of the following statements
about the doctrine of privity is correct?
a. Only a party to the contract can sue
b. Stranger to a contract cannot sue
c. A contract is enforceable by a
stranger
d. Both A and B
23. In India a person who is a stranger to
the consideration
a. Can sue on the contract, even if he
is not a party
b. Can not sue the contract
c. Depends on the parties
d. Depends on the circumstances
24. Past consideration means
a. Consideration and promise should
move together
b. Executed consideration
c. Consideration is provided prior to
the making of the contract
d. Invalid consideration
25. P renders some service to D at D’s
desire. After a month D promises to
compensate P for the service rendered
to him, it is a
a. Present consideration
b. Past consideration
c. Future consideration
d. None of these
26. Which of the following statement is
incorrect
a. Consideration must be real
b. Performance of existing obligation
is no consideration
c. Forbearance to sue is good
consideration
d. Agreements without consideration
are always void
27. A man cannot acquire rights under a
contract to which he is not a party.
Which one of the following is not an
exception to this rule
a. Beneficiaries of trust
b. Family settlement
c. Gift
d. Assignment of rights
28. A muslim lady H sued her father in
law K to recover Rs.15,000 being the
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arrears of allowance called Kharachi
Pandan’ or Pin Money’ payable to her
by K under an agreement made
between K and her father prior to and
in consideration of her marriage to K’s
son D. Both H and D were minors at
the time of marriage. In this case
a. H is not entitled to the money as
there was no consideration to K
b. H is not entitled to the amount as at
the time of the contract she was a
minor
c. H is entitled to the amount as she
was the beneficiary of a family
arrangement
d. The agreement is not an
enforceable contract.
29. X promised Y, a priest, to pay Rs.
10,000 as charity. The priest on X’s
promise incurred certain liabilities
towards the repairing of the temple to
the extent of Rs.7,500. Y, the priest,
can recover from X
a. Rs. 10,000
b. Rs.7,500
c. Nothing
d. Rs. 7,500 plus damages
30. A’s son is lost and B goes in search for
him. Can be claim remuneration from
A
a. Only if B does this act voluntarily
b. If B does this act at the request of
A
c. If B does this act at the request of
C
d. None of the above
31. The father owes Rs.10,000 to his son.
But this debt has become barred by the
limitation act. The mother signs a
written promise to pay Rs. 3,000 on
account of the debt and the same has
been registered. In this case which one
of the following is correct?
a. There is no contract as the debt is
already barred by limitation and so
it can not be revived by a
subsequent promise
b. There is no contract because the
mother has promised to give only a
part of the debt
CPT law – by babu rayipudi
c. This is a contract because there is a
natural love and affection relation
and the promise is in writing
signed and registered.
d. This is enforceable against the
mother because such a promise is
valid and binding under Indian
contract act.
32. A out of natural love and affection
promises to give his newly wedded
daughter in law a golden necklace worth
Rs.20,000. A made a promise in writing
and signed it and registered it, the
agreement is
a. Void Without consideration
b. Valid without consideration
c. Voidable
d. Unenforceable
33. A municipality seeks fund from the
general public for the construction of a
town hall. X writes Rs. 30,000 in the
subscription book and signs
a. X can deny liability on the ground that
there is no enforceable agreement
b. X can contend that a contract without
consideration is legally unsustainable
c. The municipality can demand that X
should discharge his liability, on the
ground, it incurred liability on the
faith of the promise made by X
d. X can contend that, going by the
municipality was not serious about
constructing the town hall.
34. F out of natural love and affection
promises to give his son S Rs. 1 lac. The
promise is put in writing and is registered,
the contract is
a. Valid
b. Void due to absence of consideration
c. Voidable
d. Unenforceable contract
35. Amit voluntarily agreed to sell his car of
Rs. 1 lac to bunty for Rs.1000. this is
a. A void contract on account of
inadequacy of consideration
b. A valid contract despite inadequacy of
consideration if Bunty accepts the
offer
c. An unenforceable contract
d. A voidable contract
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