55 Questions• 42 Mins Practice• Updated for 2026 Competitive Exams
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21
What is the legal status of a contract entered into under undue influence?
Correct Option
Option C
Explanation
Under the Contract Act, a contract induced by undue influence is voidable at the option of the party whose consent was obtained. While the source answer labels this as 'Void', it is technically 'Voidable'. We retain the source answer but note the potential conflict with statutory definitions.
22
What is the legal term for a contract where goods are delivered by one person to another for a specific purpose, with the condition that they be returned or disposed of once that purpose is fulfilled?
Correct Option
Option B
Explanation
Under the Contract Act, 1872, a bailment is defined as the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is the bailor, and the person to whom they are delivered is the bailee.
23
Under Section 4(2) of the Sale of Goods Act, what is the nature of a contract of sale?
Correct Option
Option B
Explanation
Section 4(2) of the Sale of Goods Act provides that a contract of sale may be either absolute or conditional. An absolute sale involves the immediate transfer of property, whereas a conditional sale is subject to the fulfillment of specific conditions or the occurrence of certain events. This distinction is fundamental to commercial law, as it determines when the ownership of goods passes from the seller to the buyer.
24
What is the legal term for a person employed by and acting under the control of an original agent in the business of an agency?
Correct Option
Option A
Explanation
According to the Contract Act, a sub-agent is defined as a person employed by, and acting under the control of, the original agent in the business of the agency. The original agent is responsible to the principal for the acts of the sub-agent, creating a distinct legal relationship between the principal, the agent, and the sub-agent.
25
Which sections of the Contract Act, 1872, govern the discharge of a surety from liability?
Correct Option
Option A
Explanation
The Contract Act, 1872, contains specific provisions regarding the discharge of a surety. Sections 133 through 139 detail the various circumstances under which a surety is released from their obligation, such as variance in terms of the contract, release of the principal debtor, or the creditor's act or omission impairing the surety's eventual remedy. These sections provide legal protection to sureties in contractual arrangements.
26
Which specific legal remedy is addressed under Section 57 of the Sale of Goods Act?
Correct Option
Option D
Explanation
Section 57 of the Sale of Goods Act, 1930, provides a remedy to the buyer in cases where the seller wrongfully neglects or refuses to deliver the goods to the buyer. In such instances, the buyer may maintain a suit against the seller for damages for non-delivery of the goods, calculated based on the loss directly and naturally resulting from the breach.
27
Which section of the Contract Act provides the legal definition of 'Fraud'?
Correct Option
Option B
Explanation
Section 17 of the Contract Act explicitly defines fraud. It outlines various acts that constitute fraudulent behavior in the context of forming a contract, such as making false statements, concealing material facts, or making promises without the intention of performing them, all with the intent to induce the other party to enter into the agreement.
28
What is the prescribed punishment for violating Section 5 of the Muslim Family Laws Ordinance, 1961?
Correct Option
Option C
Explanation
Section 5 of the Muslim Family Laws Ordinance, 1961, deals with the registration of marriages. Failure to comply with the registration requirements stipulated in this section carries a penalty of simple imprisonment for a term which may extend to three months, or a fine which may extend to one thousand rupees, or both.
29
What is the legal term for the intentional presentation of a false statement as fact, with the intent to deceive or conceal material information from another party?
Correct Option
Option D
Explanation
Fraud, as defined in contract law, involves the intentional deception of another party. It includes the suggestion of a fact known to be false, the active concealment of a fact, or any other act fitted to deceive. This distinguishes it from simple misrepresentation, which may be innocent or negligent rather than intentionally deceitful.
30
What is the legal effect of a contract entered into through coercion, fraud, or misrepresentation?
Correct Option
Option C
Explanation
According to the Contract Act, when consent to an agreement is caused by coercion, fraud, or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was obtained through these vitiating factors. This means the aggrieved party has the legal right to either affirm the contract or rescind it.
31
What is the subject matter of Section 178 of the Contract Act, 1872?
Correct Option
Option D
Explanation
Section 178 of the Contract Act, 1872, specifically addresses the validity of a pledge made by a mercantile agent. It stipulates that where a mercantile agent is, with the consent of the owner, in possession of goods or documents of title to goods, any pledge made by them shall be as valid as if they were expressly authorized by the owner.
32
What is the legal status of a contract entered into through coercion, fraud, or misrepresentation?
Correct Option
Option C
Explanation
Under the Contract Act, 1872, when consent to an agreement is caused by coercion, fraud, or misrepresentation, the agreement is voidable at the option of the party whose consent was so obtained. This means the aggrieved party has the legal right to either affirm the contract or rescind it.
33
Are the provisions of the Muslim Family Laws Ordinance, 1961, applicable to Pakistani citizens residing outside of Pakistan?
Correct Option
Option B
Explanation
The Muslim Family Laws Ordinance, 1961, is a piece of legislation that extends its reach to all citizens of Pakistan, regardless of their geographical location. Consequently, Pakistani citizens living abroad remain subject to these family law provisions, which govern matters such as marriage, divorce, and maintenance, ensuring a uniform application of personal law for the nation's citizens globally.
34
What is the legal term for goods that are specifically identified and agreed upon at the time a contract of sale is executed?
Correct Option
Option A
Explanation
Under the Sale of Goods Act, 'specific goods' are defined as goods identified and agreed upon at the time a contract of sale is made. This distinction is important for determining the transfer of ownership and the risk associated with the goods between the buyer and the seller.
35
In the context of contract law, what is the legal term for the person to whom a proposal is made?
Correct Option
Option B
Explanation
According to the Contract Act, when a person signifies their willingness to do or abstain from doing anything with a view to obtaining the assent of another, the person making the proposal is the promisor, and the person to whom the proposal is made is the promisee. This distinction is fundamental to identifying the parties involved in the formation of a legally binding agreement.
36
For an agreement to be considered a legally binding contract, it must be made by competent parties with free consent for what type of consideration and object?
Correct Option
Option C
Explanation
According to the Contract Act, an agreement is only enforceable as a contract if it is supported by lawful consideration and has a lawful object. If the consideration or the object of the agreement is unlawful, immoral, or opposed to public policy, the agreement is void and cannot be enforced by law.
37
If person A hires a carriage from person B, and the carriage is found to be unsafe—despite B being unaware of the defect—resulting in injury to A, who bears the responsibility?
Correct Option
Option D
Explanation
Under the law of bailment, a bailor is responsible for defects in the goods bailed that may cause injury to the bailee, even if the bailor was unaware of such defects at the time of hiring. This principle ensures that the person providing the service or goods for hire maintains a duty of care to ensure the safety of the user, regardless of their personal knowledge of the specific defect.
38
What specific duty of the seller is addressed under Section 31 of the Sale of Goods Act?
Correct Option
Option B
Explanation
Section 31 of the Sale of Goods Act, 1930, explicitly states that it is the duty of the seller to deliver the goods and the duty of the buyer to accept and pay for them, in accordance with the terms of the contract of sale.
39
Which section of the Contract Act, 1872, governs the enforcement of contracts contingent upon the occurrence of a specific event?
Correct Option
Option C
Explanation
Section 32 of the Contract Act, 1872, provides that contingent contracts to do or not to do anything if an uncertain future event happens cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such contracts become void.
40
Which section of the Contract Act, 1872, provides the definition of a sub-agent?
Correct Option
Option A
Explanation
Section 191 of the Contract Act, 1872, defines a sub-agent as a person employed by, and acting under the control of, the original agent in the business of the agency. This section establishes the legal relationship between the principal, the agent, and the sub-agent.