Contract act questions 1

 

  • 1.A undertakes to repay B a loan of Rs.1,000 by five equal monthly instalments with a stipulation that, in default of payment of any instalment, the whole shall become due.


  • This stipulation is by way of penalty, and the contract cannot be enforced according to its terms


  • This stipulation is not by way of penalty, and the contract cannot be enforced according to its terms


  • This stipulation is not by way of penalty, and the contract may be enforced according to its terms


  • None of these

Ans. c



 2. A mistook B to be C and paid his debt of Rs. 5000 to him. C is liable to either repay or return the money

A. Yes

B. No

C. Maybe

D. None of the above

Ans: A




 3. A and B jointly owe Rs 5000/- to C, A alone pays the amount to C, and B, not knowing this fact, pays Rs 5000/- over again to C. C is



A. Not liable          

B. Bound to repay the money to B

C. Rich

D. None of the above

Ans: B




 4. A leaves goods at B’s house by mistake. B starts using them as his own. Is B bound to pay A for them?


A. Yes

B. No

C. Maybe

D. None of the above


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