P-3: Fundamentals of Laws and Ethics Quiz

Questions and Answers

A void contract:

is void from the very beginning. (correct)

is valid in the beginning but becomes void later on.

is enforceable at the option of one of the contracting parties only.

none of the above

Which one of the following does not connote ‘goods’ as defined in the Sale of Goods Act?

Money

Both (A) and (C) (correct)

Animals

Debt

Acceptance takes place as against the proposer:

when the letter of acceptance is posted by the acceptor. (correct)

when the letter of acceptance is received by the proposer.

when the offeree writes the letter of acceptance, but doesn’t post it.

All of the above

Conditions are stipulations:

Essential to the main purpose of the contract. Signup and view all the answers

Which of the following is an offer?

Bids in an auction sale. Signup and view all the answers

The general rule of Sale of Goods Act, is risk prima facie passes with:

Delivery Signup and view all the answers

Which one of the following has the correct sequence?

Offer, acceptance, consideration, contract Signup and view all the answers

The exceptions to the rule A stranger to a contract cannot sue are:

All of the above Signup and view all the answers

Delivery of the keys of a godown where goods are kept amounts to:

Symbolic delivery Signup and view all the answers

In Indian Law consideration must have been done at the desire of the promisor, if it is done at the instance of a third party or without the desire of the promisor, it is:

Not Consideration Signup and view all the answers

Is a pronote executed in favour of a minor good in law?

No Signup and view all the answers

Right of stoppage in transit can be exercised by the Unpaid Seller, where the Buyer:

becomes insolvent Signup and view all the answers

‘A’ threatened to commit suicide if his wife did not execute a sale deed in favour of his brother. The wife executed the sale deed. This transaction is:

voidable due to coercion. Signup and view all the answers

Which one of the following statements is correct?

illegal agreements are always void. Signup and view all the answers

In pretended bidding, sale is:

illegal Signup and view all the answers

B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Owing to A’s ignorance, B is enabled to buy the estate at a low price. The contract is:

Voidable at the option of A Signup and view all the answers

A paid ₹500 to a Government servant to get him a contract for the canteen. The Government servant could not get the contract. Can A recover ₹500 paid by him to the Government servant?

No, the agreement is void. Signup and view all the answers

Study Notes

Fundamentals of Laws and Ethics

A void contract is invalid from the start, distinguishing it from contracts that may become invalid later or are enforceable at the option of one party.
In the Sale of Goods Act, money and debt do not qualify as 'goods.'
Acceptance is considered effective against the proposer when the letter of acceptance is received by them, not merely when sent.
Conditions within a contract are essential stipulations that significantly affect the essence of the agreement.
Offers arise from clear expressions of intent, not merely from quotations or advertisements unless specified as bids in an auction context.
Risk in a sale typically transfers with possession, reflecting the principles in the Sale of Goods Act.
The correct sequence of contract formation is offer, acceptance, consideration, followed by the contract itself.
Exceptions exist to the rule barring strangers from suing on contracts, such as trust beneficiaries, family settlements, and contract assignments.
Delivery of keys for goods can represent various forms of delivery, including actual, symbolic, or constructive delivery.
In Indian Law, consideration must be at the desire of the promisor; if not, it is not considered valid.
A promissory note made in favor of a minor is considered legally invalid.
An unpaid seller can stop the goods in transit if the buyer becomes insolvent.
Transactions executed under threats like suicide are classified as voidable due to coercion.
Void agreements are not necessarily illegal, but all illegal agreements are void due to lack of enforceability or legality.
Pretended bidding leads to illegal transactions, making them voidable at the seller's option.
Concealing material facts, like ore on an estate, can lead to a voidable contract based on fraudulent misrepresentation.
A payment made to a government servant for obtaining a contract is not recoverable if it violates public policy.

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Description

Test your knowledge on the fundamentals of laws and ethics with this quiz. From void contracts to various legal principles, the questions cover essential concepts that every student should understand. Challenge yourself and see how well you can navigate these important topics.