CONTRACT LAW MCQS SET 45

CONTRACT LAW MCQS SET 45

Void Agreements and Contingent Contract

1. Section …… of the Indian contract Act deals with “Agreements in restraint of Trade”.
a. 26
b. 27
c. 28
d. 29

2. The agreement to create monopoly is
a. Valid
b. Void
c. Illegal
d. Wagering

3. In which of the following agreements, Restraint of Trade is valid?
a. Agreement with Buyer of Goodwill
b. Trade Combinations not opposed to public policy
c. Partnership Agreements
d. All of the above

4. Where a Seller of Goodwill of a business agrees not to carry on similar business, the limits and conditions imposed have to be ………… having regard to the nature of the business.
a. Considerable
b. Understandable
c. Reasonable
d. Suitable

5. Trade combination agreements like opening and closing of business ventures, licensing of traders, supervision and control of dealers, etc., are
a. void
b. valid
c. voidable
d. immoral

6. When two companies enter into an joint venture agreement, the agreement is
a. opposed to public policy
b. void
c. either (a) or (b)
d. neither (a) nor (b)

7. When two companies enter into an joint ventures agreement, the agreement is
a. opposed to public policy
b. void
c. either (a) or (b)
d. both (a) nor (b)

8. Out of the following, which is a valid restriction on an employee?
a. During employment, he will not work at any other place
b. After the period of employment, he will not work anywhere
c. He will not resign from job
d. Both (b) and (b)

9. An agreement between ice manufacturers not to sell ice below a stated price and to divide the profits in a certain proportion is
a. Valid
b. Void
c. Enforceable
d. Voidable

10. An agreement among the members of a cooperative society to deliver all crops grown by them to the society. The society sells it and divides the profit amongst its member is
a. Void
b. Unenforceable
c. Valid
d. Voidable
ANSWER:

1. b
2. b
3. d
4. c
5. b
6. d
7. d
8. a
9. a
10. c