21. Which of the following is an exception to the rule that “an agreement in restraint of trade is void”? a] Agreement in restraint of marriage b] Agreement in restraint of carrying of trade after sale of goodwill c] Agreement in restraint of legal proceedings d] Agreements of trading with enemy
22. Remission is the acceptance of: a] a lesser sum than what was contracted for b] a lesser fulfillment of the promise made. c] Either [a] or [b] d] Neither [a] nor [b]
23. Henry entered into a hire purchase agreement with Sam in relation to a television for Rs.20,000/ - on condition that on paying 12 installments of Rs.2,000/- each the TV would be the property of Henry. After paying 6 installments Henry pledged the television with Richard, who took it in good faith. Sam wants to recover the television from Richard. Which of the following statement(s) is/are correct? a] Sam can recover the television from Richard. b] Sam cannot recover the television from Richard. c] Sam can only recover the price of the television from Henry. d] Henry can validly transfer the title of the television to Richard.
24. Cundy V. Lindsay case deals with: a] Coercion b] Undue Influence. c] Mistake as to the nature of transaction. d] Mistake as regards identity.
25. When the performance of a contract becomes impossible, the purpose which the parties had in mind is frustrated. If the purpose becomes impossible because of supervening event, the promisor is excused from the performance of the contract. This is known as _______. a] Doctrine of frustration. b] Initial impossibility. c] Lapse of time. d] Operation of law.
26. Which of the following is NOT considered as an exception to the doctrine of caveat emptor? a] where the seller knowingly conceals the defect which could be discovered on a reasonable examination. b] where sale is by description and sample c] where buyer has disclosed the purpose d] where goods are bought by description from a seller dealing in goods of that description.
27. Which is not correct? a] unless otherwise agreed, each of joint promisors may compel every other joint promisor to contribute equally with himself to the performance of the promise. b] If anyone of the joint promisors makes default in making contribution, the remaining joint promisors must bear the loss arising from such default equally. c] A release of one of the joint promisors by the promisee does not discharge the other joint promisor. d] A release of one of the joint promisors by the promisee frees joint promisor so released from responsibility to the other joint promisor (s).
28. X, Y and Z are partners in a software business. They jointly promise to pay Rs.30,000 to A. Over a period of time Y became insolvent, but his assets are sufficient to pay ¼’ of his debts. Z is compelled to pay the whole. a] Z has to bear the entire amount of liability b] X has to bear the entire loss arising out of Y’s insolvency c] X and Z have to bear equally, the loss arising out of Y’s insolvency d] Z can recover back the entire amount from A.
29. Mr.X purchased a used computer from Mr. Y thinking it as a computer imported from England, Mr. Y failed to disclose the fact to Mr. X. On knowing the fact Mr. X wants to repudiate the contract. Which of the following statement is correct? a] Mr. X can repudiate the contract on the ground of fraud. b] Mr. X can repudiate the contract on the ground of misrepresentation. c] Mr. X cannot repudiate the contract. d] Mr. X can repudiate the contract on the ground of mistake.
30. The foundation of modern law of damages was laid down in: a] Tinn v. Hoffman. b] Taylor v. Caidwell. c] Hadley v. Baxendale. d] Addis v. Gramophone Co.