Every question in BL, searchable by chapter and source.
Under which provision of the Indian Constitution are judgments of the Supreme Court binding on all courts within the territory of India?
After a Bill has been passed by both Lok Sabha and Rajya Sabha, what is the immediate constitutional requirement before it can become an Act of Parliament?
Which rule of natural justice embodies the principle that a party must be given a fair opportunity to present his case?
Rohit promises to give his friend a watch as a gift and his friend accepts the promise. There is no consideration and no intention to create legal relations. Under the Indian Contract Act, 1872, this arrangement is best described as
An 17‑year‑old student enters into a written agreement to sell his bicycle to a dealer for Rs. 5,000. Which essential element of a valid contract under Section 10 is missing?
A sends an offer by email to B on June 1. B receives the email on June 5 but does not read it. On June 6, before reading the offer, B posts a letter of acceptance. Is B's acceptance effective?
Alpha Ltd. already owns a specific machine tool and agrees to sell that machine to Beta Ltd. In a separate agreement, Alpha Ltd. promises to sell 500 kg of mangoes that will be harvested from its orchard next season. The contract concerning the machine involves which category of goods under the Sale of Goods Act, 1930?
C Ltd. stores a consignment of steel rods for D Ltd. The warehouse manager signs a receipt stating that the rods are now held for D Ltd., without any physical movement of the rods. This situation exemplifies which form of delivery under the Sale of Goods Act, 1930?
E Ltd. sells a shipment of coffee beans to F Ltd. The parties agree that the bill of lading issued by the carrier will be transferred to F Ltd as evidence of title. Under the Sale of Goods Act, 1930, the bill of lading is classified as which of the following?
Which of the following is NOT an essential element required to constitute a partnership under Section 4 of the Indian Partnership Act, 1932?
When applying Section 6 to determine whether a partnership exists, the court must consider which of the following?
The principle that an act performed by one partner in the ordinary course of the firm's business binds all the partners is termed as:
An LLP originally had three partners. After two partners withdrew, the LLP continued to carry on business for eight months with only one partner. Which statement is correct under the LLP Act, 2008?
XYZ LLP has five partners: three corporate entities and two individuals, one of whom is a resident in India. Which combination can be validly appointed as designated partners under Section 7?
Which statement accurately reflects the legal character of a Limited Liability Partnership under Section 2(1)(d) of the LLP Act, 2008?
A private limited company wishes to change the procedure for appointing its directors as stated in its Articles of Association. Which of the following is the required method to effect this change under the Companies Act, 2013?
In which situation is a court most likely to lift the corporate veil and hold the members personally liable under the Companies Act, 2013?
The continuity of a company's existence despite the death or insolvency of its shareholders is ensured by which feature of a company under the Companies Act, 2013?
Which of the following statements correctly describes a negotiable instrument that is payable to order?
In a bill of exchange, which party becomes an "acceptor" upon acceptance of the bill?
Which of the following is NOT an essential characteristic of a negotiable instrument under the Negotiable Instruments Act, 1881?
Which of the following is identified as the foremost source of law in India, forming the basis for all other laws?
Under the distribution of legislative powers in the Indian Constitution, a matter such as Income Tax, which is exclusively assigned to the Union, falls under which list?
A subject on which both the Central Government and State Governments may pass laws, such as levy of stamp duty, falls under which list of the Constitution?
Which branch of law is primarily concerned with wrongs against the State or society, prosecuted by the State, and punishable by imprisonment or fine?
Civil law, as distinguished from criminal law, is primarily concerned with:
The legal system historically developed in England, based substantially on judicial precedent and custom rather than codified statute, and which significantly influenced Indian law, is known as:
Which principle of natural justice embodies the requirement that no person should be a judge in their own cause?
The principle of natural justice 'audi alteram partem' requires that:
Which ministry of the Government of India is primarily responsible for administering the Companies Act, 2013 and regulating corporate affairs?
Which regulatory body is primarily responsible for protecting the interests of investors in securities and regulating the securities market in India?
Which body is the central bank of India, responsible for monetary policy and regulation of the banking sector?
Which regulatory body was established to regulate insolvency and bankruptcy proceedings for companies, partnerships, and individuals under the Insolvency and Bankruptcy Code?
Which ministry generally oversees the overall administration of justice and law-making machinery, including matters relating to the judiciary and legislative drafting, at the Union level?
At the apex of the Indian judicial system stands:
In the hierarchy of Indian courts, which of the following sits directly below the Supreme Court and typically has jurisdiction over a State (or group of States/Union Territories)?
A law that governs the conduct and rights/obligations of individuals in their private dealings with one another (as opposed to their relationship with the State) is best classified as:
Which of the following best describes the doctrine of 'stare decisis' as followed in the common law tradition?
A rule of conduct that has been consistently and uniformly observed by a community over a long period, and which is recognised as legally binding, is described in law as:
Enforcement of law in India, particularly public/criminal law, is primarily the responsibility of:
An agreement or an act that is contrary to an existing statute and hence not enforceable by law is generally referred to, in the context of sources and nature of law, as:
Laws passed by a State Legislature under matters falling exclusively within the State List apply:
Parliament, as the ultimate law-making body at the Union level, consists of the President and which two Houses?
The precursor statute passed by the Parliament of the United Kingdom that shaped the structure of government in India before the Constitution of India came into force was:
A body such as SEBI, RBI, or IBBI, established by statute to regulate a specific sector or activity, is generally referred to as a:
Which of the following best distinguishes 'public law' from 'private law'?
Under the Indian Contract Act, 1872, an agreement enforceable by law is defined as a:
When one person signifies to another their willingness to do or abstain from doing something, with a view to obtaining the assent of the other, this is called a:
When the person to whom a proposal is made signifies their assent to it, the proposal is said to be:
'Consideration' for a promise, as defined in the Act, generally refers to:
Which of the following is generally recognised as an exception to the rule 'no consideration, no contract'?
Which of the following is NOT one of the essential elements for a valid contract under the Indian Contract Act, 1872?
Under Section 11 of the Act, who is generally considered incompetent to contract?
An agreement entered into by a minor (a person who has not attained the age of majority) is generally treated, under Indian law, as:
'Free consent' is said to be absent when the consent of a party to an agreement is caused by any of the following EXCEPT:
'Coercion', as defined under the Act, involves:
'Undue influence' under Section 16 typically arises where:
An agreement, the meaning of which is not certain or capable of being made certain, is:
An agreement by way of wager (a bet on an uncertain future event) is, under Section 30 of the Act:
A 'contingent contract' is a contract to do or not do something:
'Quasi-contracts' under the Act are best described as:
When a party to a contract has refused to perform, or disabled themselves from performing, their promise before the time fixed for performance has arrived, this is known as:
A contract of 'indemnity' is a contract by which one party promises to:
A contract of 'guarantee' is a contract to perform the promise, or discharge the liability, of a third person in case of their default; the person who gives the guarantee is called the:
In a contract of 'bailment', the person who delivers goods to another for some purpose, under a contract that the goods shall be returned or disposed of according to that person's directions, is called the:
The bailment of goods as security for payment of a debt or performance of a promise is specifically called:
An 'agent', under the Act, is a person:
Which of the following is generally recognised as a valid mode of discharge of a contract?
'Novation' of a contract refers to a situation where:
When a contract becomes impossible to perform after it is made, due to an event which the promisor could not prevent, and without any fault of the parties, this discharges the contract on the ground of:
'Misrepresentation', as distinguished from 'fraud', under the Act generally involves:
Under the Sale of Goods Act, 1930, a contract of sale of goods is a contract whereby the seller:
Where, under a contract of sale, the transfer of property in the goods is to take place at a future time or subject to a condition to be fulfilled later, the contract is called:
'Goods', as defined under the Act, means every kind of movable property other than:
A stipulation in a contract of sale which is essential to the main purpose of the contract, the breach of which gives the aggrieved party the right to treat the contract as repudiated, is called a:
A stipulation collateral to the main purpose of a contract of sale, breach of which gives rise only to a claim for damages (not a right to reject the goods or repudiate the contract), is called a:
The general rule 'caveat emptor' applicable to a contract of sale of goods means:
Which of the following is a recognised exception to the rule of caveat emptor under the Sale of Goods Act?
In a sale of goods by description, there is an implied condition that:
Under Section 14, in every contract of sale, unless a different intention appears, there is an implied condition on the part of the seller that:
An 'unpaid seller', under the Act, is a seller of goods:
Which of the following is a right that an unpaid seller may exercise against the goods themselves, even where property in the goods has passed to the buyer?
The unpaid seller's right of 'stoppage in transit' allows the seller, upon the buyer's insolvency, to:
As between the seller and the buyer, unless otherwise agreed, the general rule regarding delivery of goods and payment of price is that they are treated as:
Where the seller delivers a quantity of goods larger than they contracted to sell, the buyer, under the Act, may:
'Property in goods', as used in the Sale of Goods Act, refers to:
In a sale of specific goods, the general rule is that property in the goods passes to the buyer:
'Delivery' of goods, under the Act, means:
An 'auction sale' under the Act is completed, and the contract of sale becomes complete, at what point?
Which of the following best describes a 'condition' becoming treated as a 'warranty' under the Act?
In a sale of goods by sample, there is an implied condition that:
The transfer of ownership of goods from the seller to the buyer is referred to, under the Act, as the passing of:
As a general rule under Section 26, risk of loss of goods, unless otherwise agreed, prima facie follows:
Which of the following is an example of 'future goods' under the Act?
Where existing goods, without the knowledge of the seller, have perished at the time a contract of sale is made, the contract is:
Under the Indian Partnership Act, 1932, 'partnership' is defined as the relation between persons who have agreed to share the profits of a business:
Persons who have entered into partnership with one another are called, collectively, and the name under which their business is carried on is called:
Which of the following is an essential element of partnership under the Act?
Registration of a partnership firm under the Indian Partnership Act, 1932 is:
A partner who takes an active part in the conduct of the business of the firm, and is also known to the outside world as a partner, is generally described as a:
A 'sleeping' or 'dormant' partner is one who:
A person who lends their name to a firm, without having any real interest in it or taking any share of its profits, but who may still be held liable to third parties who give credit to the firm believing them to be a partner, is called a:
Under Section 30 of the Act, a minor may be:
Under the Act, every partner is, for the purposes of the business of the firm, considered the agent of:
Which of the following is generally described as an 'implied authority' of a partner in the usual course of business (in the absence of any usage or custom to the contrary)?
Every partner is liable, jointly with all the other partners and also severally, for:
A partnership 'at will' is one where:
Dissolution of a partnership firm, as distinguished from mere dissolution of partnership between some partners, refers to:
Which of the following is a ground on which a firm may be dissolved by the Court, under Section 44 of the Act, on a partner's suit?
The relationship of partners inter se (among themselves) is primarily governed by:
In the absence of any contract to the contrary, partners are entitled to share the profits of the business:
Under Section 13, in the absence of a contract to the contrary, a partner is:
A partner's right to have the firm's business wound up after dissolution, and to have the firm's assets applied in payment of debts and liabilities, is generally referred to as the partner's right of:
A partner who wishes to retire from a partnership at will may do so by:
Upon retirement, unless otherwise agreed, a retiring partner continues to be liable for acts of the firm done before retirement, and also for acts done after retirement until:
Which of the following best describes 'joint and several' liability of partners for the firm's debts?
A partnership agreement to carry on a particular adventure or undertaking, formed for that specific venture, is generally known as a:
Which of the following duties is a partner generally bound to observe towards the other partners, under the Act?
If a partner derives any profit for themselves from any transaction of the firm, or from the use of the firm's property, name, or business connection, without the consent of the other partners, that partner must:
A Limited Liability Partnership (LLP), under the LLP Act, 2008, is best described as a hybrid structure combining:
An LLP, under the Act, is a body corporate formed and incorporated under the Act, and is a legal entity:
The liability of a partner in an LLP for the LLP's obligations is generally:
Every LLP must have a minimum of how many designated partners, at least one of whom must be resident in India?
'Designated partners' in an LLP are primarily responsible for:
The mutual rights and duties of partners of an LLP, and the mutual rights and duties of the LLP and its partners, are primarily governed by:
In the absence of any LLP agreement as to a particular matter, the mutual rights and duties of partners, and of the LLP and its partners, are determined by:
An LLP is required to maintain proper books of account and, based on those accounts, must file with the Registrar a Statement of Account and Solvency, which is to be signed by:
Every partner of an LLP is, for the purpose of the business of the LLP, the agent of:
An obligation of an LLP, whether arising in contract or otherwise, is generally the obligation of:
An LLP is liable if a partner of the LLP is liable to any person as a result of a wrongful act or omission on the part of the partner, provided the wrongful act or omission was carried out:
Which of the following is a recognised feature/advantage of the LLP form, as compared to a traditional partnership firm?
An existing partnership firm may convert into an LLP, in accordance with the provisions of the LLP Act, subject to:
Which of the following is a recognised challenge or limitation associated with the LLP structure?
The name of every LLP incorporated under the Act must end with which of the following words/letters?
An LLP may be wound up, under the Act, either:
An 'LLP agreement', as defined under the Act, refers to:
Every LLP is required to have a registered office to which all communications and notices may be addressed, and which must be:
Which of the following persons is generally disqualified from being a partner of an LLP under the Act?
A 'body corporate' (such as a company or another LLP), under the LLP Act, is generally permitted to become:
The concept of 'perpetual succession' in the context of an LLP means that:
An LLP is required to maintain its books of account on which basis?
Which of the following statements about the taxation treatment of an LLP, relative to a general partnership, best reflects an established principle rather than a volatile figure?
Under the Act, 'contribution' of a partner to an LLP may consist of:
Under the Companies Act, 2013, a 'company' is generally defined as a company:
A company is regarded, in law, as a legal person separate and distinct from its members -- this is generally referred to as the principle of:
A 'private company', as generally defined under the Act, is a company which, by its articles, restricts the right to transfer its shares and:
A 'public company' is a company that:
A 'Government Company', as defined under the Companies Act, 2013, is one in which:
'One Person Company (OPC)' refers to a company which has:
The 'Memorandum of Association' of a company is generally described as the document that:
The 'Articles of Association' of a company primarily deal with:
The doctrine that a company cannot be bound by, and cannot enforce, an act that falls outside the objects specified in its Memorandum of Association is known as the doctrine of:
The doctrine of 'indoor management' (also known as the Turquand rule) generally protects:
Under the concept of 'lifting the corporate veil', a court may, in certain exceptional circumstances (such as fraud), disregard the separate legal personality of a company and:
A share is generally described as a form of property representing:
An 'equity share' generally carries with it, as compared to a 'preference share':
'Preference shares' generally carry a preferential right, as compared to equity shares, in respect of:
The process by which a company is formed and comes into legal existence, following the issue of a Certificate of Incorporation, is called:
A person who agrees to take shares of a proposed company and whose name is subscribed to the Memorandum of Association is called a:
A 'promoter' of a company, in general company-law usage, refers to a person who:
The registered office of a company is significant primarily because:
A 'Nidhi Company' under the Act is generally a company incorporated with the object of:
A company limited by shares is a company in which the liability of members is limited, by the Memorandum, to:
A company limited by guarantee is a company in which the liability of members is limited, by the Memorandum, to:
An 'unlimited company', as recognised under the Act, is a company in which:
The minimum number of members required to form a private company under the Act (as distinguished from a One Person Company) is generally:
A 'listed company' is a company which has any of its securities:
Which of the following best captures the concept of 'perpetual succession' as applied to a company?
Under the Negotiable Instruments Act, 1881, a 'negotiable instrument' means a promissory note, bill of exchange, or cheque payable to:
A 'promissory note' is an instrument in writing containing an unconditional undertaking, signed by the maker, to pay:
A 'bill of exchange' is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money to:
A 'cheque' is a bill of exchange drawn on a specified banker, and:
In a bill of exchange, the person who makes/draws the instrument, directing another to pay, is called the:
In a bill of exchange, the person thereby directed to pay is called the:
The person named in the instrument, to whom or to whose order money is directed to be paid, is called the:
'Negotiation' of an instrument, under the Act, occurs when an instrument is transferred to a person so as to constitute that person the:
'Endorsement', in relation to a negotiable instrument, refers to:
A 'holder in due course' is a person who, for consideration, became the possessor of a negotiable instrument before the amount became payable, and:
A holder in due course of a negotiable instrument generally obtains a title that is:
When the holder of a negotiable instrument, by an intentional act, remits or waives their right against a party to the instrument, this is generally described as:
'Dishonour by non-acceptance' of a bill of exchange typically occurs when:
'Dishonour by non-payment' occurs when the party primarily liable on a negotiable instrument:
Under Section 138 of the Act, dishonour of a cheque for insufficiency of funds in the drawer's account is:
'Crossing' of a cheque, effected by drawing two parallel transverse lines on its face (with or without additional words), generally has the effect of:
An endorsement that specifies the person to whom, or to whose order, the instrument is to be payable, in addition to the signature of the endorser, is called:
An endorsement consisting merely of the signature of the endorser, without specifying any endorsee, is called:
'Presentment for payment' generally refers to the requirement that a negotiable instrument be presented to the party liable to pay:
A 'bearer' instrument, under the Act, is one:
An instrument payable 'to order', as distinguished from one payable 'to bearer', requires which additional act for valid negotiation?
Where a bill of exchange is drawn payable a certain period 'after sight', the term of the bill begins to run from:
'Material alteration' of a negotiable instrument, made without the consent of all parties liable on it, generally has the effect of:
A 'noting' of a dishonoured bill of exchange or promissory note is generally done by:
An 'inland instrument' under the Act is a promissory note, bill of exchange, or cheque which is:
An offer, once communicated, remains open for acceptance until it is:
A 'counter offer' made by the offeree in response to an original offer has the legal effect of:
An invitation to treat (such as goods displayed in a shop window with a price tag) is generally distinguished from a genuine offer because:
Communication of acceptance is complete, as against the proposer, when it:
An agreement not enforceable by law is, under Section 2(g), said to be:
A 'voidable contract' is one that is:
An agreement is generally treated as a valid, enforceable contract from the moment:
An offer may be revoked by the offeror, under Section 5, at any time:
A 'general offer' (such as a public reward offer) can be validly accepted by:
Which of the following is an essential element of a valid 'acceptance' under the Act?
An agreement is treated as 'void' from the start if, among other reasons, it is made:
An offer made 'subject to contract' or expressly stated to require formal confirmation generally indicates that the parties:
The distinction between a 'unilateral' and a 'bilateral' contract lies in:
An offer lapses, under the Act, if it is not accepted within the time prescribed, or, if no time is prescribed, within:
Acceptance of an offer must generally be communicated in the manner:
An offer made to a specific person can generally be validly accepted:
Silence, as a general rule under Indian contract law, does NOT amount to:
A contract is generally said to be a 'bilateral' executory contract when, at the time of formation:
An offer can generally be made either:
The 'intention to create legal relations' is generally regarded as an essential (though not always explicitly listed) element of a valid contract, meaning that:
Consideration for a promise may move from:
Consideration need not be adequate, but must be:
'Past consideration' refers to an act done:
'Executory consideration' refers to consideration that:
'Executed consideration' refers to consideration that:
An agreement to pay a time-barred debt (a debt that could no longer be recovered through a court due to limitation) is an exception to 'no consideration, no contract' provided it is:
The rule that 'consideration must move at the desire of the promisor' means that:
Which of the following best illustrates 'consideration moving from a person other than the promisee'?
An agreement made without consideration is void, EXCEPT in certain specified cases, one of which is where it is:
A promise to compensate a person who has already voluntarily done something for the promisor is an exception to the consideration requirement, provided the promisor was:
The general rule that 'a stranger to a contract cannot sue' is closely linked to the principle that:
Consideration, to be valid, must be lawful; an agreement where the consideration is opposed to public policy is:
An agreement in restraint of trade is, subject to specified statutory exceptions, generally treated under Section 27 as:
A promise made to the Government to do or refrain from doing something, without any consideration passing between the promisor and the Government, is treated under Section 25 as:
Which of the following is generally considered adequate consideration to render a contract enforceable, despite being of comparatively low economic value?
Consideration that is illusory (i.e. not real, such as a promise to do something the promisor is already legally bound to do, offered as if it were fresh consideration) is generally:
The maxim 'ex nudo pacto non oritur actio' (a bare/naked promise does not give rise to a right of action) reflects the general common-law-derived principle that:
Where a promisee performs an act at the promisor's request, but the exact value of that act was never precisely quantified in advance, the consideration is still valid because:
A promise to subscribe to a charitable cause is generally enforceable against the promisor once the promisee, acting on the faith of that promise, has:
Besides offer, acceptance, and consideration, which of the following is also an essential element for a valid contract under Section 10?
A 'wagering agreement' is void under Section 30 primarily because:
An agreement, the terms of which are vague and cannot be made certain, is void under Section 29 because:
An agreement 'in restraint of marriage' of any person other than a minor is, under Section 26:
An agreement 'in restraint of legal proceedings' -- one that absolutely restricts a party from enforcing their rights through the ordinary legal process -- is, under Section 28, generally:
'Free consent', as defined under Section 14, means consent that is NOT caused by:
'Consensus ad idem' is a foundational phrase in contract law referring to:
A 'lawful object', as required under Section 10, means that the purpose of the agreement must NOT be:
An agreement contingent upon an impossible event happening is, under Section 36, treated as:
An 'illegal agreement' differs from a merely 'void agreement' primarily in that an illegal agreement:
For a valid contract, the requirement that parties must not be disqualified from contracting 'by any law to which they are subject' would, for example, generally exclude:
An agreement expressly declared void by the Act itself, such as a wagering agreement, is void:
'Competency to contract', under Section 11, requires that a person be of the age of majority, of sound mind, and:
'Soundness of mind', for the purpose of contracting under Section 12, requires that, at the time of making the contract, a person be capable of:
A person who is usually of unsound mind, but occasionally of sound mind, may make a contract:
An agreement is void ab initio if its object or consideration is such that, if permitted, it would defeat the provisions of:
Where the consideration or object of an agreement is unlawful in part, and that unlawful part cannot be separated from the lawful part, the entire agreement is:
An agreement made under a 'mutual mistake of fact', essential to the agreement, is, under Section 20, treated as:
A contract caused by a unilateral mistake of one party only, as a general rule, is:
'Performance of a contract' refers to:
'Actual performance' of a contract occurs when a party:
'Attempted performance' (or tender), under Section 38, refers to a situation where a party:
Under Section 37, the promisors under a contract are bound to perform, or offer to perform, their respective promises:
Where a promise is made to perform a personal act (such as a unique service depending on the promisor's own skill), and the promisor dies before performance, the general rule is that:
For contracts NOT involving personal skill, upon the death of the promisor, the general rule under Section 37 is that the obligation:
Where a promise is to be performed by two or more joint promisors, in the absence of any contrary intention, they must:
Under Section 43, in the case of joint promisors, the promisee may, in the absence of an express agreement to the contrary:
'Reciprocal promises', under Section 2(f), refer to promises that form:
Under Section 51, where reciprocal promises are to be simultaneously performed, a promisor need not perform their promise unless:
Where the order in which reciprocal promises are to be performed is expressly fixed by the contract, they must be performed:
Time is generally considered 'of the essence' of a contract when:
An 'appropriation of payments', under Sections 59-61, becomes relevant when:
Under Section 59, where a debtor, at the time of making a payment, expressly indicates or the circumstances plainly imply which particular debt the payment is meant to discharge, the payment:
Reciprocal promises that are legal, where a portion of the promise is also illegal, are, under Section 57, generally treated as:
Under Section 39, if a promisor has refused to perform, or disabled themselves from performing, their promise in its entirety, the promisee may:
Under Section 40, if it appears from the nature of the case that it was the intention of the parties that a promise should be performed by the promisor personally, that promise:
Under Section 41, when a promisee accepts performance of the promise from a third person, the promisee:
Under Section 63, a promisee may dispense with or remit, wholly or in part, the performance of a promise made to them, or may:
'Breach of contract' occurs when a party:
'Anticipatory breach' occurs when a party:
'Actual breach' of a contract occurs:
'Damages', as a remedy for breach of contract, are primarily intended to:
Under Section 73, damages recoverable for breach of contract are generally limited to loss or damage that:
'Liquidated damages' refer to:
Under Section 74, where a contract specifies a sum to be paid in case of breach (whether termed a penalty or otherwise), the aggrieved party is entitled to receive:
'Specific performance', as an equitable remedy for breach of contract, refers to a court order:
'Injunction', as a remedy for breach of contract, is a court order:
'Quantum meruit', as a remedy, allows a party who has partly performed a contract (and is then prevented from completing it, or the rest becomes discharged) to claim:
'Rescission' of a contract, as a remedy available to the aggrieved party upon breach, refers to:
The general duty to 'mitigate loss' in the context of breach of contract requires the aggrieved party to:
Where a contract is discharged by breach, the aggrieved party is generally entitled to sue for damages while also, at the same time, being:
Nominal damages are awarded when a breach of contract has occurred but the aggrieved party has:
A court will generally refuse to order 'specific performance' of a contract where:
'Exemplary' (or punitive) damages, awarded in exceptional categories of cases, differ from ordinary compensatory damages in that they are intended to:
Where a party wrongfully prevents the other from performing their part of a contract, the party so prevented is entitled to treat the contract as:
An aggrieved party seeking damages for breach of contract bears the burden of proving:
'Restitution', as a remedy sometimes available alongside or instead of damages, generally aims to:
A 'contingent contract' is, under Section 31, a contract to do or not do something:
A contingent contract to do something on the happening of a future uncertain event cannot be enforced by law unless and until:
A contingent contract to do something on the NON-happening of a future uncertain event can be enforced when:
A contingent contract contingent upon how a person will act at an unspecified time becomes void when:
A contingent contract to do something if a specified uncertain event does NOT happen within a fixed time becomes void if, at the expiration of that time:
'Quasi-contracts', as recognised under the Act (Sections 68-72), are best described as:
Under Section 68, if a person incapable of entering into a contract (or someone they are legally bound to support) is supplied with necessaries suited to their condition in life, the supplier is entitled to be reimbursed from:
Under Section 69, a person who is interested in the payment of money which another is bound by law to pay, and who therefore pays it, is entitled to:
Under Section 70, where a person lawfully does something for another, or delivers something to them, not intending to do so gratuitously, and the other person enjoys the benefit, the latter is bound to:
Under Section 71, a person who finds goods belonging to another and takes them into their custody is subject to the same responsibility as a:
Under Section 72, a person to whom money has been paid, or anything delivered, by mistake or under coercion, must:
A contingent contract dependent on an event happening within a fixed time becomes void if, before the expiration of that time, the happening of the event:
The underlying rationale for quasi-contractual obligations is generally described as preventing:
A minor (a person incapable of contracting) who is supplied with necessary goods suited to their condition in life is:
Contingent contracts are commonly illustrated by which of the following types of agreements?
A contingent contract is distinguished from a wagering agreement primarily because a contingent contract:
Quasi-contractual claims are typically enforced through an action for:
Under the principle in Section 70, a person who voluntarily and officiously confers a benefit on another, with a clear intention to do so gratuitously (as a gift), generally:
The set of provisions in Sections 68 to 72 of the Act are collectively described, in the marginal heading of that chapter, as relating to certain relations:
A 'contract of indemnity', under Section 124, is a contract by which one party promises to save the other from loss caused by:
In a contract of indemnity, the party who promises to make good the loss is called the:
The rights of an indemnity-holder, when sued in respect of matters covered by the promise of indemnity, include the right to recover from the indemnifier:
A 'contract of guarantee', under Section 126, is a contract to perform the promise, or discharge the liability, of a third person in case of their:
In a contract of guarantee, the person in respect of whose default the guarantee is given is called the:
In a contract of guarantee, the person who gives the guarantee is called the:
A guarantee may be either:
The 'liability of the surety' under Section 128 is, in the absence of a contract to the contrary:
A guarantee given for a series of transactions, contemplated to continue over a period, is called a:
A continuing guarantee may, in the absence of a contract to the contrary, be revoked by the surety, as to future transactions, by:
A surety is discharged from liability, under Section 133, if the creditor, without the surety's consent, makes any:
A surety is discharged, under Section 134, when the creditor:
Where the creditor, without the surety's consent, agrees to give the principal debtor extra time to pay (an 'extension of time'), the surety, under Section 135, is:
Upon payment of the guaranteed debt, a surety is 'invested with all the rights which the creditor had against the principal debtor' -- this is the surety's right of:
A surety is entitled, under Section 141, to the benefit of every security the creditor has against the principal debtor at the time the contract of guarantee was entered into, whether or not:
Any guarantee obtained by means of misrepresentation made by the creditor, relating to a material part of the transaction, is, under Section 142:
Where a guarantee has been obtained by the creditor through keeping silent about a material circumstance, this may render the guarantee:
A 'co-surety', where two or more sureties guarantee the same debt, is, in the absence of any contract to the contrary, liable to contribute:
'Fidelity guarantees', a common commercial application, are typically given to guarantee:
Which of the following best distinguishes a contract of indemnity from a contract of guarantee?
'Bailment', under Section 148, is the delivery of goods by one person to another for some purpose, upon a contract that the goods shall be, when the purpose is accomplished:
In a bailment, the person delivering the goods is called the:
A bailee is bound, under Section 151, to take as much care of the goods bailed as:
A bailee must not, under Section 154, make any unauthorised use of the goods bailed; if they do, they become:
A bailee, under Section 170, has a right of 'particular lien' -- the right to retain the goods bailed until they receive due remuneration for:
A finder of lost goods, treated under the Act as a bailee, may sell the goods found, under Section 169, if the owner cannot be found with reasonable diligence, or if the owner refuses to pay lawful charges, and the goods are:
A 'gratuitous bailment' is one in which:
A bailor is bound to disclose to the bailee, under Section 150, faults in the goods bailed that:
'Pledge' (or pawn), under Section 172, is the bailment of goods as security for:
In a pledge, the person who delivers the goods as security is called the:
A pawnee has, under Section 173, a right to retain the goods pledged not only for payment of the debt, but also for:
If the pawnor makes default in payment of the debt, the pawnee, under Section 176, may either sue the pawnor for the debt (retaining the goods as collateral security), or:
A pledge by a person who is not the owner of the goods, but who is in possession of them with the owner's consent, is, under Section 178, generally:
Which of the following is an example of bailment?
The essential difference between 'bailment' generally and 'pledge' specifically is that a pledge:
A bailee is generally NOT entitled to make a valid pledge or otherwise deal with the bailed goods as if they were their own, because:
Where goods are bailed for a specific time or purpose, the bailor is entitled, under Section 159, to demand their return:
A bailee who mixes the bailor's goods with their own, WITH the bailor's consent, results in the two parties having:
A bailee who WITHOUT the bailor's consent mixes the bailor's goods with their own, in a manner that makes it impossible to separate them, is generally liable to:
An 'agent', under Section 182, is a person employed to do any act for another, or to represent another in dealings with third persons, and the person for whom such act is done is called the:
No consideration is necessary, under Section 185, to create an agency; the relationship of principal and agent may be created:
Any person who is of the age of majority and of sound mind may employ an agent; as regards the agent themselves, under Section 184, even a person who is otherwise not competent to contract (such as a minor) may:
An agency created when the principal, by their words or conduct, leads a third party to believe that a person has authority to act as their agent, is called agency by:
'Agency by ratification' arises when a person, without any prior authority, acts on behalf of another, and that other person later:
'Agency of necessity' may arise in emergency circumstances where a person, though not formally appointed as an agent, acts to protect the interests of another because:
An agent's authority to act for the principal, arising by implication from the circumstances of the case (such as the agent's business or trade), is called:
An agent's authority, in an emergency, extends, under Section 189, to doing all such acts:
An agent is generally bound to conduct the business of their agency according to:
An agent is bound, under Section 213, to render proper accounts to their principal on:
If an agent deals on their own account in the business of the agency, without first obtaining the principal's consent, and material facts have been dishonestly concealed, or the dealing has been disadvantageous to the principal, the principal may, under Section 215:
An agent is entitled, under Section 217, to retain, out of any sums received on account of the principal, all moneys due to themselves in respect of:
An agent's authority, as against the principal, generally extends to all acts that are:
A 'sub-agent' is a person employed by, and acting under the control of, the original agent in the business of the agency; as a general rule, an agent:
Where a sub-agent is properly appointed, in accordance with the principal's authority, the principal is, under Section 192, bound by, and responsible for, the acts of the sub-agent:
An agency is, under Section 201, terminated by the principal revoking their authority, by the agent renouncing the business of the agency, by the completion of the business of the agency, or by:
An agency coupled with interest -- where the agent has a personal interest in the subject matter of the agency -- generally cannot, under Section 202, be terminated to the prejudice of that interest:
A principal is generally liable for the acts of their agent that are done within the scope of the agent's:
Where an agent, acting within their authority, enters into a contract on behalf of a named principal, the general rule is that the contract is directly between:
A contract of sale of goods, under Section 4, is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a:
Where the transfer of property in the goods takes place immediately at the time of contracting, the contract is called a:
An 'agreement to sell' becomes a 'sale' when:
'Goods', under Section 2(7), includes every kind of movable property, EXCEPT:
'Existing goods' are goods that:
'Specific goods', under Section 2(14), are goods identified and agreed upon:
Where, without the knowledge of the seller, specific goods have perished at the time the contract of sale is made, the contract is, under Section 7:
Where specific goods perish, without any fault of either party, after the agreement to sell is made but before the risk passes to the buyer, the agreement is, under Section 8:
The 'price' in a contract of sale of goods may be fixed by the contract, or may be left to be fixed in a manner agreed, or may be determined by:
A contract of sale may be made in writing, or by word of mouth, or may be implied from the:
An 'earnest' (or earnest money), often paid at the time a contract of sale is entered into, generally serves as:
'Future goods', under Section 2(6), are goods to be manufactured, produced, or acquired by the seller:
A contract for the sale of future goods, by their very nature, operates as an agreement to sell rather than an immediate sale, because:
'Unascertained goods' are goods that are:
Where the seller reserves the right of disposal of goods, even though they have been delivered to a carrier for transmission to the buyer, the property in the goods:
A 'condition', under Section 12, is a stipulation essential to the main purpose of the contract, the breach of which gives the aggrieved party the right to:
A 'warranty', under Section 12, is a stipulation collateral to the main purpose of the contract, breach of which gives rise to a claim for:
In a sale by description, there is, under Section 15, an implied condition that:
Where goods are bought by sample as well as by description, it is, under Section 15, not sufficient that the bulk corresponds with the sample if the goods do not also correspond with the:
Under Section 16, an implied condition as to fitness for a particular purpose arises where the buyer expressly or by implication makes known to the seller the particular purpose, showing reliance on the:
Under Section 16(2), an implied condition as to 'merchantable quality' arises where goods are bought by description from a seller who deals in goods of that description, EXCEPT where the buyer has:
An implied WARRANTY (not a condition) recognised under Section 14 is that the buyer shall have and enjoy:
An implied warranty that the goods are free from any charge or encumbrance in favour of a third party, not declared or known to the buyer, is provided under:
A breach of condition may, under Section 13, be treated by the buyer as a mere breach of warranty (limiting the remedy to damages only) where the buyer:
'Sale by sample', under Section 17, implies a condition that the bulk shall correspond with the sample in:
An implied condition as to 'title', under Section 14(a), is that in the case of a sale, the seller has a right to sell the goods, and in the case of an agreement to sell, the seller:
The distinction between a condition and a warranty is significant primarily because it determines:
Whether a particular stipulation in a contract of sale is a condition or a warranty generally depends on:
The doctrine of 'caveat emptor' (let the buyer beware) is significantly qualified by the various implied conditions and warranties under Sections 14-17, since these provisions:
Where the goods have been sold under a patent or other trade name, the implied condition of fitness for a particular purpose under Section 16(1) generally:
In a sale of unascertained goods, no property in the goods is transferred to the buyer, under Section 18, unless and until the goods are:
In a sale of specific goods, property passes to the buyer at the time the parties to the contract:
Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods, under Section 20, passes to the buyer:
As a general rule under Section 26, risk of loss of the goods, unless otherwise agreed, follows:
'Delivery' of goods, under Section 2(2), means a voluntary transfer of possession from one person to another, and may be:
'Constructive delivery' occurs when, without any actual change in physical possession of the goods, the person in possession acknowledges that they now hold the goods on behalf of the:
Where the seller delivers to the buyer a quantity of goods LESS than they contracted to sell, the buyer may, under Section 37:
Delivery of goods may be made by doing anything which the parties agree shall be treated as equivalent to delivery, such as delivering:
Unless otherwise agreed, delivery of goods and payment of the price are, under Section 32, treated as:
Where goods are sold on 'sale or return', or on similar approval terms, the property in the goods generally passes to the buyer when the buyer:
The seller of goods is deemed, under Section 2(3), to be an 'unpaid seller' when the whole of the price has not been paid or tendered, or when a bill of exchange or other negotiable instrument given as conditional payment has been:
The transfer of 'property' in goods (ownership) is a legally distinct concept from the transfer of mere 'possession', because a person may have possession of goods:
Where goods are sold in a deliverable state but the seller is bound to do something to them for the purpose of ascertaining the price (such as weighing or measuring), property does not pass, under Section 22, until:
Under Section 39, delivery of goods to a carrier for transmission to the buyer is, unless a contrary intention appears, treated as delivery of the goods to the:
'Delivery' of goods must be distinguished from mere 'transfer of property' in that delivery refers to a transfer of:
Under Section 20, when specific goods sold are NOT in a deliverable state, and the seller has to do something to put them into a deliverable state, property does not pass, under Section 21, until that thing is done and the buyer:
An 'unpaid seller', as defined under the Act, retains, against the goods themselves, notwithstanding that property may have passed to the buyer, a right of:
The unpaid seller's 'right of lien', under Sections 47-49, is the right to:
The unpaid seller's lien is lost, under Section 49, when the seller:
The unpaid seller's 'right of stoppage in transit' arises specifically where the buyer has become:
Goods are deemed to be 'in transit', for the purpose of the right of stoppage, from the time they are delivered to a carrier for transmission to the buyer, until the buyer, or their agent, takes:
The unpaid seller may exercise the right of stoppage in transit either by taking actual possession of the goods, or by giving notice of their claim to the:
An unpaid seller's right of RESALE arises, under Section 54, notably where the goods are of a perishable nature, or where the seller has expressly reserved a right of resale in case the buyer should make:
In addition to the rights against the goods themselves, an unpaid seller also has certain personal rights against the buyer, including the right to sue for the:
An unpaid seller may also sue the buyer for 'damages for non-acceptance' where the buyer:
The unpaid seller's right of lien is available only while the seller remains in possession of the goods; it is therefore best described as a right that is:
An unpaid seller's lien may be exercised by the seller not only for the price of the specific goods, but also, under Section 47(2), where the seller has made a part delivery of the goods, for the:
Once the unpaid seller's right of lien is lost (for example, by parting with possession), it is generally:
A buyer who has obtained possession of the goods before paying the full price, and who then transfers the documents of title to a bona fide third-party purchaser for value, generally results in the unpaid seller's rights of lien and stoppage in transit being:
An unpaid seller's remedy of suing for 'interest', under Section 61, may be claimed on the unpaid price:
The various remedies available to an unpaid seller (lien, stoppage in transit, resale, and suit for price/damages) are best understood as:
The 'true test' of partnership, as developed through case law interpreting Section 4, places the greatest emphasis on:
Sharing of profits is prima facie evidence of partnership, but is not conclusive proof, because certain profit-sharing arrangements, such as with a lender receiving a share of profits in lieu of interest, are, under Section 6, specifically excluded from being treated as:
A partnership firm, under Indian law (as distinguished from an LLP or a company), does NOT possess:
The number of partners in a partnership firm, though not directly capped by the Partnership Act itself, is indirectly restricted by a limit prescribed under:
A partnership 'for a fixed term' automatically comes to an end, in the absence of a contrary agreement, upon:
Which of the following relationships would generally NOT constitute a partnership under the Act, despite involving profit-sharing?
The relationship of partnership arises from a:
A partnership firm's 'business', for the purposes of the Act, is generally understood to include:
The essential elements required for a valid partnership under Section 4 include an agreement between persons, an intention to carry on a business, and:
A partnership is generally distinguished from a mere 'joint venture' primarily by the fact that a partnership:
The name under which a partnership's business is carried on is called the firm name; partners, as a group, are collectively referred to as the:
An agreement to share only the LOSSES of a business, with no agreement to share profits at all, would generally:
A partnership can be formed to carry on a business that is:
The maximum number of partners permitted in a partnership carrying on banking business, as against other kinds of business, has historically been treated, under the relevant Companies Act rules, as:
Which of the following best describes why 'mutual agency' is often described as the 'cardinal principle' or the 'best test' of partnership?
The mutual rights and duties of partners may be determined, under Section 11, by contract between the partners, which contract may be:
Subject to contract between the partners, under Section 12, every partner has a right to take part in the:
Subject to contract between the partners, any difference arising as to ordinary matters connected with the business may, under Section 12(c), be decided by:
Under Section 12(d), no change may be made in the nature of the partnership business without the consent of:
Subject to contract between the partners, under Section 13(a), a partner is:
Subject to contract between the partners, under Section 13(b), the partners are entitled to share equally in the profits earned, and shall contribute equally to the losses sustained by the firm:
Subject to contract between the partners, under Section 13(c), a partner making, for the purposes of the business, any payment or advance beyond the amount of capital they agreed to subscribe, is entitled to interest thereon at the rate of:
Subject to contract between the partners, under Section 13(d), the firm is bound to indemnify a partner in respect of payments made and liabilities incurred by them:
Under Section 13(f), a partner shall indemnify the firm for any loss caused to it by their:
Under Section 14, property originally brought into the partnership stock, or acquired for the purposes and in the course of the business of the firm, is called:
Under Section 16, subject to contract between the partners, if a partner derives any profit for themselves from any transaction of the firm, or from the use of the firm's property, name, or business connection, they must:
Under Section 16(b), if a partner carries on any business of the same nature as, and competing with, the firm's business, they must account for and pay to the firm all:
Every partner is bound to attend diligently to their duties in the conduct of the business; this general duty is closely connected to the broader duty, under Section 9, of partners to:
Under Section 17, in the absence of any contrary contract, upon a change in the constitution of the firm (such as after expiry of a fixed term, if the business is continued), the mutual rights and duties of the partners generally:
A partner's implied authority to bind the firm, under Section 19, extends to acts done for the purpose of, and in the usual way of carrying on, business of the kind carried on by the:
Registration of a partnership firm under the Act is:
Under Section 69(2), an unregistered firm (or any partner suing on its behalf) is generally barred from instituting a suit in any court to enforce a right arising from a contract against:
The application for registration of a firm is made to the:
Which of the following details is generally required to be stated in an application for registration of a firm?
'Dissolution of the firm', under Section 39, means the dissolution of the partnership between:
A firm may be dissolved, under Section 40, with the consent of:
'Compulsory dissolution' of a firm occurs, under Section 41, by the happening of certain events, such as:
Subject to contract between the partners, a firm is dissolved, under Section 42, by the death of a partner, or, in the case of a partnership at will, by any partner giving:
A court may, at the suit of a partner, dissolve a firm under Section 44 on grounds such as a partner becoming of unsound mind, or:
Upon dissolution of a firm, every partner (or their representative) is entitled, under Section 46, as against all the other partners, to have the property of the firm applied in payment of the debts and liabilities of the firm, and to have the:
Under Section 45, notwithstanding dissolution, the partners continue to be liable to third parties for any act done by any of them which would have been an act of the firm, until public notice is given of the dissolution; this rule does NOT apply to the estate of a partner who dies, or who is:
The distinction between a 'reconstitution' of a firm and a full 'dissolution' of a firm lies in that a reconstitution:
The unpaid seller's remedies against the goods (lien, stoppage in transit, resale) are available regardless of whether property in the goods has already passed to the buyer, because these rights are:
Where the unpaid seller exercises the right of resale after giving the buyer notice of an intention to resell, and the buyer still fails to pay within a reasonable time, the seller may resell the goods and recover from the original buyer:
Under the Indian Partnership Act, 1932, registration of a firm is: