Important MCQs of Contract Act 1872 Fully Solved

In one of the following ways a surety can be discharged from his liability:

A. as he has no more interest
B. he feels the business not profitable
C. by revocation
D. none of above

In the absence of a contract to the contrary, the death of surety operates as:

A. surety will be carried on by the legal heirs
B. a notice of revocation
C. both A & B
D. none of above

An agreement enforced by law is a contract.

A. True
B. False

Rasheed and Ahsan agreed to substitute for a new contract for an old one. This will be called:

A. revocation
B. breach, of contract
C. novation
D. none of above

Majid stands as a surety in a contract between Tufail and Asif. Tufail and Asif made some variations in the term of the contract. If they do it without the consent of Majid. In case of any default now:

A. Majid is no more liable
B. Majid’s guarantee is still liable
C. Majid’s guarantee is no more liable
D. none of above

Imran appointed Akram as a clerk on a salary basis to sell the goods. All gave guarantee to Akram. Afterward, without the knowledge of Ali, Imram agreed to pay commission to Akram on goods sold by him. Now is a case of any subsequent misconduct of Akram.

A. Ali is liable as surety
B. All is discharged from surety
C. Imran and Akram have right to look towards surety
D. none of above

You also like:  PPC MCQs – MCQs of Pakistan Penal Code 1860 (151-206)

An agreement not enforceable by law is void agreement.

A. True
B. False

An agreement which is enforceable by law at the option of one or more of the parties.

A. True
B. False

Ahmed contracts will Baber for a fixed period to build a house for Baber, within a stipulated time. Baber supplying the necessary timber. Qadir guarantees Ahmed’s performance. Baber omits to provide the Timber. Now?

A. Qadir will be held responsible
B. Qadir is discharged from his suretyship
C. Qadir is liable to pay
D. none of above

Imran and Raza entered in a contract. Arshad guarantees Imran’s conduct. During the course of contract, Imran becomes insolvent.

A. Arshad is not liable to pay
B. Arshad is discharged from liability
C. Arshad is not discharged from suretyship
D. none of above

If there are three sureties. Discharge of any one of them by creditor will.

A. automatically discharge the other
B. does not discharge the others
C. both A & B
D. none of above

You also like:  LLB Part 1: English Jurisprudence MCQs (61-80)

A creditor does an act or omission the legal consequences of which is the discharge of the principle debtor. This will?

A. discharge the surety too
B. not discharge the surety
C. not show that surety is no more liable
D. none of above

Mere forbearance on the part of the creditor to sue the principal debtor or to enforce any other remedy against the principal debtor

A. discharges-the surety
B. does not discharge the surety
C. both A & B
D. none of above

Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction is?

A. an invalid guarantee
B. valid guarantee
C. both A & B
D. none of above

Any guarantee obtained by a creditor by concealment of material circumstances is?

A. valid guarantee
B. an invalid guarantee
C. both A & B
D. none of above

Substantial failure of consideration as between the creditor and the principal debtor in a contract of guarantee?

A. discharges the surety
B. does not discharge the surety
C. discharge of consideration
D. none of above

You also like:  MCQs of Company Ordinance 1984

If some surety signed under the impression that others were going to join the suretyship, and if they don’t

A. even then he is liable to his guarantee
B. he is discharged from his suretyship
C. both A & B
D. none of above

Agency is a two parties relationship in which one person acts as representative to the other in business dealings.

A. True
B. False

Agency may be created by?

A. words of mouth
B. an agreement in writing
C. both A & B
D. none of above

Where the agent has authority in fact but does not disclose the existence of the agency, the principal is called the undisclosed principal.

A. True
B. False

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Income Tax Return Master Course

Be a Tax Expert & Earn Money. Enroll in our Income Tax Return Master Course.

0
Would love your thoughts, please comment.x
()
x