Every promise and every set of promises, forming the consideration for each other, is an _______.

(a)

Agreement

(b)

Contract

(c)

Offer

(d)

Acceptance

A contract with or by a minor is a _________.

(a)

Valid contract

(b)

Void contract

(c)

Voidable contract

(d)

Voidable at the option of either party

'A' promises to obtain for 'B' an employment in the public service and 'B' promises to pay' Rs.5,00,000 to A. The agreement is_______.

(a)

Legal

(b)

Illegal

(c)

In good faith

(d)

Fraudulent

Which one of the following is not correct ?

(a)

Agreement = Offer + Acceptance

(b)

Agreement = Proposal + Acceptance

(c)

Agreement = Contract + Acceptance

(d)

Contract = Agreement + Enforceability by law

All illegal agreements are void; but all void agreements are not illegal ______.

(a)

True

(b)

Partly true

(c)

False

(d)

None of the above

A contract creates ______.

(a)

rights in person

(b)

rights in parties

(c)

no obligations

(d)

only obligations and no rights

Mercantile person denotes ....................

(a)

Individual

(b)

Partnership

(c)

A Company

(d)

All the above

Law of contract is ................

(a)

neither the whole law of agreements nor is it the whole law of obligations

(b)

the whole law of agreements

(c)

the whole law of obligations

(d)

none of these

An agreement is a voidable contract when it is ........................

(a)

enforceable if certain conditions are fulfilled

(b)

enforceable by law at the option of the aggrieved party

(c)

enforceable by both the parties

(d)

not enforceable at all

A contract .................

(a)

may be void as originally entered into

(b)

may become void subsequent to its formation

(c)

cannot become void under any circumstances

(d)

may become void at the will of a party